U.S. Bank Launches Access Home Loan Mortgage to Remove Barriers to Homeownership
July 12 2023 - 12:00PM
Business Wire
Up to $12,500 in Down Payment Assistance and
$5,000 Lender Credit Available to Eligible Homebuyers
U.S. Bank is expanding access to homeownership with the launch
of U.S. Bank Access Home Loan, a mortgage Special Purpose Credit
Program (SPCP) that provides up to $12,500 in down payment
assistance and up to an additional $5,000 lender credit.
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U.S. Bank has committed $100 million over
the next five years to the Access Home Loan program. (Photo:
Business Wire)
U.S. Bank has committed $100 million over the next five years to
the Access Home Loan program, which is now available to qualified
buyers in multiple markets. The new mortgage offering aligns with
the U.S. Bank Access Home initiative focused on advancing Black
homeownership.
The goal of the initiative is to address some of the historical
obstacles that communities of color face in the homeownership
process. With improved access to credit, financial education and
mortgage professionals that represent the communities served, U.S.
Bank Access Home supports wealth building through homeownership and
helps close the wealth gap that persists within communities of
color.
“We know that homeownership is the No. 1 way to build long-term
wealth, but far too many minority families and individuals simply
can’t come up with the upfront costs to buy a home,” said Lenny
McNeill, who leads strategic markets and affordable lending for
U.S. Bank. “There was a need that needed to be met. Our Access Home
initiative, and now the U.S. Bank Access Home Loan, provide the
level of financial support that can make sustainable homeownership
a reality for underserved populations.”
In addition to down payment assistance and lender credit, buyers
using the Access Home Loan have the option to use lender credit to
buy down their interest rate, a way for borrowers to obtain a lower
interest rate at closing.
Access Home Loan joins the long-standing U.S. Bank American
Dream mortgage focused on assistance to help homebuyers with
limited resources overcome thresholds to buying, including down
payments as low as 3% and assistance funds that can be used towards
a down payment, closing costs, required repairs or
improvements.
The new Access Home Loan goes a step further providing
additional financial assistance for buyers in pilot markets where
the minority population is more than 50%. While the Access Home
Loan is primarily designed to support first-time homebuyers,
borrowers do not need to be a first-time buyer to qualify.
According to the National Association of Realtors, the gap in
homeownership rates between white Americans (72.7%) and Black
Americans (44%) is at its highest in a decade at 29 percent. The
rate of homeownership among Hispanic Americans (50.6 %) and Asian
Americans (62.8%) also falls below the white American homeownership
rate1. The Access Home Loan program is just one way U.S. Bank is
working in the communities it serves to increase access to
homeownership within underserved segments of the community.
About the U.S. Bank Access Home Loan:
- Down payment as low as 3%
- Up to $12,500 in down payment assistance
- Up to $5,000 lender credit that can be used toward closing
costs, including the ability to buy down mortgage interest
rate
- Borrower can combine with other down payment assistance grants
and programs
- $1,000 minimum contribution from borrower’s own funds
How to qualify:
- Borrower must currently reside in a majority/minority location,
determined by census tract data
- Borrower income is equal to or below the HUD Area Median Income
in the area where they want to buy. If borrower income is above the
median income, subject property must be located in a
low-to-moderate income census tract
- In most cases, a FICO Score of at least 640 is needed.
Alternative credit data like your monthly rent, utility payments,
income and employment information may be used
- Available initially in the pilot markets of Las Vegas, Little
Rock, Milwaukee, Minneapolis, St. Louis as well as six California
cities including Sacramento, Los Angeles, Oakland, Fresno, San
Diego and Riverside/San Bernadino
U.S. Bank Access Home Loan builds upon U.S. Bank Access
Commitment™ announced in 2021 as a long-term approach to help build
wealth while redefining how the company serves racially diverse
communities and provide more opportunities for employees. Within
this commitment, the broader Access Home initiative has invested
nearly $1.6 million to support a wide range of outreach, engagement
and educational efforts within the Black community across five
initial markets, all of which are initial markets where the Access
Home Loan is available. Access Home has also supported the hiring
of a new cohort of Black mortgage loan officers who will serve
diverse communities across the country to help demystify the
homebuying process.
For more information, visit the U.S. Bank Access Home Loan
webpage.
About U.S. Bank
U.S. Bancorp, with approximately 77,000 employees and $682
billion in assets as of March 31, 2023, is the parent company of
U.S. Bank National Association. The Minneapolis-based company
serves millions of customers locally, nationally and globally
through a diversified mix of businesses: Consumer and Business
Banking; Payment Services; Corporate & Commercial Banking; and
Wealth Management and Investment Services. Union Bank, consisting
primarily of retail banking branches on the West Coast, joined U.S.
Bancorp in 2022. U.S. Bancorp has been recognized for its approach
to digital innovation, social responsibility, and customer service,
including being named one of the 2023 World’s Most Ethical
Companies. Learn more at usbank.com/about.
Disclosure:
Loan approval is subject to credit approval and program
guidelines. Not all loan programs are available in all states for
all loan amounts. Interest rates and program terms are subject to
change without notice. Visit usbank.com to learn more about U.S.
Bank products and services. Mortgage and Home Equity products are
offered by U.S. Bank National Association. Deposit products are
offered by U.S. Bank National Association. Member FDIC.
Equal Housing Lender
Loans and lines of credit are offered by U.S. Bank National
Association. Deposit products are offered by U.S. Bank National
Association. Member FDIC.
1 [2023 Snapshot of Race and Home Buying in America, March 2,
2023] The factual information provided has been obtained from
sources believed to be reliable, but is not guaranteed as to
accuracy or completeness
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230712112410/en/
Tessa Bajema, U.S. Bank Public Affairs & Communications
tessa.bajema@usbank.com | 415-774-2394
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