Bank Provides Low-Income Buyers an Affordable
Path to Home Ownership
Fifth Third Bank is proud to introduce a new type of mortgage
that provides an affordable option for low-income families and
people purchasing in low-income communities. The Fifth Third
Community Mortgage helps pay closing costs and some fees.1
“We want to help build strong communities,” said Chris Shroat,
head of Fifth Third Mortgage. “We know that making homes affordable
is one of the best ways we can help improve our neighborhoods.”
Fifth Third examined the biggest financial obstacles to home
ownership, including assembling a down payment, paying closing
costs and the lack of a consistent monthly payment. The Bank found
that, while many potential home buyers could afford monthly
payments and upkeep for a home, it was difficult to save enough for
initial buying expenses.
Fifth Third’s Community Mortgage will pay the lender’s closing
costs and some fees, up to $1,500, for qualified buyers.1 The
mortgage also can be combined with Fifth Third’s Down Payment
Assistance program, which pays up to $3,600 to qualifying
low-income buyers or those buying in low-income areas.2
“Home ownership is one of the strongest indicators of a
neighborhood’s strength and success,” Shroat said. “Fifth Third
created a responsible mortgage, getting customers into an
affordable property with less money out of their pockets and a
sustainable down payment.”
The Fifth Third Community Mortgage requires a down payment of
about 3%. It discounts costs for financial services, and it doesn’t
require buyer-paid private mortgage insurance. The low-income tract
is determined by the federal government through U.S. Census data.
Potential buyers should check with a Fifth Third mortgage loan
originator to see if the area they are looking in qualifies for the
credit.1
Micheal and Sierra Friend used the Community Mortgage program
this year to help buy their two-bedroom home in Central Ohio. The
couple said without the program, they would still be renting an
apartment, paying almost twice the cost they now pay for their
mortgage and expenses. Fifth Third bought down the interest rate on
the house and paid some other fees. In addition, the couple saves
$28 a month in private mortgage insurance paid by the lender with
the Bank’s Community Mortgage.
“This is our first real home,” Sierra Friend said. “We’re so
lucky that Fifth Third made sure we had a mortgage with payments we
could not just afford, but could also still save money and plan for
our future.”
The Community Mortgage program is part of the Bank’s $32 billion
Community Commitment. Fifth Third has delivered $8 billion in
mortgage lending since 2016, an impact partly due to the success of
the Bank’s Down Payment Assistance program, which provides up to
$3,600 in down payment funding to LMI borrowers, or to potential
homeowners making a purchase in a LMI census tract.2 The down
payment program has helped over 1,800 homeowners achieve the
American dream since 2017.
About Fifth Third
Fifth Third Bancorp is a diversified financial services company
headquartered in Cincinnati, Ohio and the indirect parent company
of Fifth Third Bank, an Ohio-chartered bank. As of March 31, 2019,
Fifth Third had $168 billion in assets and operated 1,207
full-service Banking Centers and 2,559 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 approximately
52,000 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, 2019,
had $394 billion in assets under care, of which it managed $44
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. Deposit and Credit products are offered by
Fifth Third Bank. Member FDIC.
1 The loan payment may be the same, but the actual amount could
vary depending on the price of insurance and taxes. To be eligible
for the Fifth Third Community Mortgage, the property must be a
one-unit, primary residence in one of the following eligible
states: FL, GA, IL, IN, NC, OH, TN or WV, and either the property
must be located in a low income U.S. Census tract or the borrower's
gross annual qualifying income must be at or below 80% of the area
median income (AMI). Available for 30-year fixed-rate mortgage
only. Adjustable rate mortgages (ARMs) are ineligible. 97% Loan to
Value (LTV)/105% Closing to Value (CLTV). Maximum loan amount of
$250,000. Homebuyer education is required by at least one
qualifying borrower. Borrower must contribute at least $500 of own
funds. Fifth Third Community Mortgage includes a 0.25% origination
fee (of loan amount) and application fee. Manual underwrite
only.
2 To be eligible for the down payment assistance of 3% of the
home’s purchase price, up to $3,600, the property must be in one of
the following eligible states: FL, GA, IL, IN, KY, MI, NC, OH, TN
or WV and either the property must be located in a low income U.S.
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 loan products.
Loans are subject to credit review and approval. Fifth Third
Bank, 38 Fountain Square Plaza, Cincinnati, OH 45263, NMLS# 403245.
Fifth Third Bank was established in 1858. Member FDIC.
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version on businesswire.com: https://www.businesswire.com/news/home/20190429005592/en/
Laura Trujillo513-534-NEWS
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