Mortgage deals keep cropping up, the latest being the American Bank Access New Home Loan, which comes with up to $12,500 in down payment assistance and up to $5,000 lender credit. Population over 50%, however, borrowers do not need to be a first time homebuyer to qualify, although income limits apply. Right now, it’s being piloted in select cities nationwide, including Las Vegas, Los Angeles, Little Rock, Milwaukee, and St. Louis. Read on to learn more about this program, which allows FICO scores as low as 640. To help mitigate the That said, the Minneapolis, Minnesota-based US Bank has committed $100 million to the new Access Home Loan program over the next five years. Also in line with the company’s initiative focused on promoting black homeownership, this specifically means residing in a market where the minority population is more than 50%, according to census data, in addition, the borrower’s income must be equal to or less than The average HUD income in the area where they want to buy a property. However, you can still qualify for this loan if your earnings are above average income, assuming the subject property is located in a low-to-middle-income census district. Homebuyers qualify, and credits can be combined with grants and other programs to help prepay. Speaking of which, you can get up to $12,500 in down payment with our US Bank Access Home Loan, along with up to $5K. Lender Credits: You can get down payment assistance of up to $8,000 or 3% of the purchase price up to $12,500 — whichever is greater, and that puts the maximum purchase price at about $417,000 for the full 3%. Used to offset closing costs and/or lower the interest rate, the minimum down payment is only 3%. This means that you can buy a home for very little and potentially snag a discounted mortgage rate in the process. Note that there is a minimum contribution of $1,000 of the borrower’s money, so you can’t appear completely empty-handed. Most importantly, the assistance money is deferred, but must be paid, it is due when the property is sold, or if the first mortgage is refinanced or paid off, so it appears that you are getting an interest-free loan, as opposed to actual loan grants that do not need to be repaid. Access to US Bank Home Loan Fast Facts Get up to $12,500 in down payment assistance money and up to $5,000 in lender credit (for closing costs, etc.) Must Buy in Majority Location Minority population greater than 50% $1,000) Maximum debt-to-income (DTI) ratio of 43% Borrowers must complete the Home Buyer Course Mortgage Insurance Coverage by US Bank May be combined with other grants and programs For down payment assistance US Bank Home Loan is currently available US Bank Home Purchase Loan is being piloted in select markets across the country These markets include Las Vegas, Little Rock, Milwaukee, Minneapolis, St. Louis, along with Six cities in California, and the California cities are Fresno, Los Angeles, Oakland, Riverside/San Bernardino, Sacramento, and San Diego: In these pilot markets, the minority population should be greater than 50%, as determined by census data, and assuming all goes well. The US Bank is likely to roll out the program in additional markets that meet the criteria. Is this a good deal? Where software like this surface, I include a section on whether or not it’s a good deal. In the end, you have to look at the whole picture to determine if a US Bank Home Loan is superior to other options. That is, once you find out you qualify, compare your mortgage rate, closing costs, payment, APR, and service to other banks, mortgage lenders, and credit unions. Also note that down payment assistance offered through this program must be paid back if you sell or pay off the loan, and this may differ from other grants and down payment assistance programs where it is released after a certain period of time. Lender credits, which you don’t need to pay off, and they cover mortgage insurance costs, which can be expensive when you cut back a little on buying a home, and they only seem to offer a 30-year fixed loan option, which is somewhat restrictive, but potentially It would be the chosen option for the majority of borrowers anyway. Overall, this sounds like a pretty good deal if you’re already in the market for a home, and it’s located in one of the eligible areas.
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