Fifth Third Mortgage Offers Tips and Down
Payment Assistance Program
A combination of low housing inventory, rising interest rates
and changes in tax laws could make shopping for a house more
difficult this year. Fifth Third Mortgage has tips to help
prospective home buyers navigate what’s new, and how to be ready to
purchase with confidence.
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the full release here:
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Alaysyah Yayhisrael used Fifth Third
Bank's Down Payment Assistance Program to buy her Cincinnati home.
(Photo: Business Wire)
“We’re seeing a lot of millennials looking for their first home
this year,” said Ed Robinson, head of Fifth Third’s mortgage
business. “Many of them are worried they won’t be able to get what
they want. We want to help prepare them for their house hunt so
they’re ready to make an offer when they find the right one.”
Robinson shared these five ideas to consider:
Be ready to make an offer: With available housing
hovering at record-low levels, prospective buyers will want to
consider getting a pre-approved loan when they are looking at
houses. “More sellers are staying put, and competition is fierce,”
Robinson said. Mortgage pre-approval differs from prequalification.
Pre-approval shows that you have your bank’s backing, while
prequalification shows an amount you qualify to borrow.
Look for programs that will help you: There are more than
200 federal, state and local programs to assist consumers to make
their down payments or pay their mortgage closing costs. Some
programs are only for first-time homebuyers, while others benefit
specific groups, like veterans. Fifth Third’s Down Payment
Assistance Program offers 3 percent of the purchase price in down
payment assistance, up to $3,600, for low-income borrowers or those
purchasing in a designated low-income area and financed through
Fifth Third.* Fifth Third’s program also can be combined with state
and local programs to help consumers take advantage of free money
for their down payments. “Fifth Third’s Down Payment Assistance
Program is a great way for people who can afford a house payment
but can’t get over that hump of the down payment,” Robinson
said.
Fifth Third has awarded more than $3 million in down-payment
assistance since the program’s launch two years ago. The average
assistance is $2,700.
Know what rising interest rates mean: Mortgage rates have
reached their highest levels since 2011, a signal that very
inexpensive loans won’t continue. Rates on a 30-year, fixed-rate
mortgage were under 4 percent in the summer of 2017. Now the rates
hover around 4.6 percent. “When you are at a lower income level, a
bump like we’re seeing is going to affect you,” Robinson said. “It
might mean you no longer can afford that house.”
Understand what you can afford: Don’t look only at what
you can borrow but what works for your monthly payments, Robinson
advised. “Debt limits have increased, but that doesn’t mean you
want to increase the cost of the house,” he said. “You never want
to buy more than you can afford.” Fannie Mae, for example, has
begun purchasing loans with borrowers who have a debt to income
ratio of up to 50 percent instead of the previous 45 percent limit.
“That means buyers would qualify for a bigger loan, but that
doesn’t always mean buyers should borrow a larger amount,” Robinson
said. Look at costs beyond the mortgage, taxes and insurance to
heating, cooling and maintenance.
Understand what the tax law changes mean: Some of the
changes in the tax law could affect buyers’ purchasing power. The
cap on interest deduction is now $750,000 of mortgage debt, down
from $1 million previously. The deduction for property tax
deductions for state and local taxes is now capped at $10,000.
*To be eligible for the down payment assistance of 3 percent, up
to $3,600, the property must be in one of the following eligible
states: MI, IN, IL, KY, TN, OH, WV, NC, GA, FL, and either be
located in a Low Income Census Tract or borrower must meet the low
income limit threshold based on the qualifying income per FFIEC
website. Down payment assistance may be taxable as income and
reported to the IRS. Consult your tax advisor. Not available with
all products.
Loans subject to credit review and approval. Prices and programs
subject to change without notice. Fifth Third Mortgage Company,
5001 Kingsley Drive, Cincinnati, Ohio 45227, an Illinois
Residential Mortgage Licensee. Fifth Third Mortgage Company d/b/a
Fifth Third Mortgage Company Incorporated and licensed by the New
Hampshire Banking Department. Fifth Third Mortgage is the trade
name used by Fifth Third Mortgage Company (NMLS #134100) and Fifth
Third Mortgage-MI, LLC (NMLS #447141). Fifth Third Bank, Member
FDIC.
About Fifth Third
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio. As of March 31, 2018, the
Company had $142 billion in assets and operated 1,153 full-service
Banking Centers and 2,459 ATMs with Fifth Third branding in Ohio,
Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West
Virginia, Georgia and North Carolina. In total, Fifth Third
provides its customers with access to more than 54,000 fee-free
ATMs across the United States. Fifth Third operates four main
businesses: Commercial Banking, Branch Banking, Consumer Lending
and Wealth & Asset Management. Fifth Third is among the largest
money managers in the Midwest and, as of March 31, 2018, had $363
billion in assets under care, of which it managed $37 billion for
individuals, corporations and not-for-profit organizations through
its Trust and Registered Investment Advisory businesses. Investor
information and press releases can be viewed at www.53.com. Fifth
Third’s common stock is traded on the Nasdaq® Global Select Market
under the symbol “FITB.” Fifth Third Bank was established in 1858.
Member FDIC.
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version on businesswire.com: https://www.businesswire.com/news/home/20180619006149/en/
Fifth Third MortgageLaura Trujillo,
513-534-4361Laura.trujillo@53.com
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