JPMorgan Chase announced it is now offering up to $3,000 in grants and incentives that will cover closing costs and the down payment for homebuyers in low- to moderate income communities.
Qualified buyers will be eligible to receive a $2,500 grant along with an additional $500 available for customers getting a DreaMaker mortgage after they complete a homebuyer education course.
Currently, more than 90 million Americans currently live in eligible lower income areas, according to the American Community Survey data from the U.S. Census Bureau.
“We’re committed to helping more families achieve homeownership,” Chase Home Lending CEO Mike Weinbach said. “A common barrier for some families is the upfront cash for closing.”
“By providing closing cost and down payment assistance, we can help more families buy homes they can afford now and in the future,” Weinbach said.
The grant is available on DreaMaker mortgages, or low-to-moderate income mortgages available for 30-year fixed rate loans on a single-family home with down payment options as low as 3% and reduced mortgage insurance requirements. The $2,500 grant is also available for Standard Agency, FHA and VA home lending products.
However, the $500 grant is only available for the DreaMaker mortgage and requires borrowers to take the homeownership education course.
The company explained this program stems from its announcement back in January that it will invest $20 billion over five years to help its employees by raising wages and support job and local economic growth in the U.S.
The company made the decision to invest in the economy after President Donald Trump signed the Tax Cuts and Jobs Act into law.
Chase committed to increasing its affordable lending by 25% to $50 billion over the next five years as well as increase homeownership grants by nearly 70% from $1,500 to $2,500 for low-income community buyers. The bank will also expand the homeownership grant program from 40 markets to being available nationwide.
To serve in these communities, the bank also announced it will hire 500 new home lending advisors.
And Chase isn’t the only bank giving back to its employees and helping economic growth. Several banks announced wage increases, bonuses and new plans to give back after tax reform became law; check out a few of those companies here and here.