Chase Home Lending announced the expansion of its $5,000 homebuyer program to nearly 5,000 Hispanic communities in 20 markets across the U.S.

The grant can be applied in two of the scenarios that present the greatest barriers for those who want to own a home, the initial cash needed for the down payment, and the closing costs.

Cerita Battles, head of Community and Affordable Lending at Chase, stated:

This grant supports Chase’s long-term, comprehensive commitment toward uplifting and empowering Black, Hispanic, and Latino neighborhoods.

Grant Currently Available

This is how you can access resources for $5,000:

• Is available on DreaMaker, Standard Agency, FHA and VA mortgages.
• Can be used toward closing costs, down payment, and/or for mortgage points that can reduce the interest rate.
• Can be combined with the $500 Homebuyer Education Benefit when purchasing a home with a DreaMaker mortgage and completing an approved course.
• Is available on properties located in designated census tracts.
• Is eligible for purchase mortgages on a primary residence only.

“The industry continues to be challenged to think differently in how we approach racial equity and closing the wealth gap through homeownership. We believe expanding our $5,000 Homebuyer Grant program is a step in the right direction and a direct investment in American families and the diverse communities in which they live and thrive,” added Battles.

Percentage of owners according to race

According to figures presented by the 2021 State of Hispanic Homeownership from the National Association of Hispanic Real Estate Professional, the percentage in the rate of home ownership points to a marked gap, with 44.6% for blacks, compared to 74.2 % for whites.

For its part, according to the US Census Bureau, the rate for Latinos was 48.4% in 2021, so the Urban Institute expects the group to account for 70% of the growth in home ownership in the United States on the next 20 years.

Additionally, 40.8% of Latino adults under the age of 45 are mortgage ready today, according to the 2021 State of Hispanic Homeownership from the National Association of Hispanic Real Estate Professionals.

“The Chase Homebuyer Grant helps alleviate some of the stress that comes with down payment and closing costs. Those are two of the biggest hurdles I see clients struggle with, even when they are putting down less than 20%. The grant truly makes housing more accessible for buyers in Black and Hispanic communities—even more so when coupled with other Chase resources or grants available at the local level,” pointed out Fredy Peñaranda, owner of Fredy Peñaranda Team at eXp Realty, based in Houston. 

More tools

Chase also offers these resources to support homeownership for all customers:

• Veterans Closing Cost of Purchase: Chase recently announced a $2,000 VA Closing Cost of Purchase benefit for veterans, service members and their families who purchase a home with a VA home loan. It is also cumulative with the Chase Homebuyer Grant.
• Steps to Homeownership: Chase has launched a new homebuyer education program in partnership with select nonprofit organizations. This program is intended to help consumers who are not yet financially ready to purchase a home, but who are committed to taking the necessary steps to prepare. It also offers budgeting guidance, credit counseling, and a financial health assessment to prospective buyers.
• Beginner To Buyer Podcast: Chase has released Spanish episodes of its Beginner To Buyer podcast on YouTube. The podcast breaks down the home buying process, especially helpful for first-time buyers, with episodes that address common fears or misconceptions about home buying, including where to start and how to navigate what can seem like an overwhelming process.

The grant is part of a special purpose credit program (SPCP) that Chase developed in accordance with federal legal requirements. It is available for property purchases in communities identified by the US Census as being majority Black, Hispanic, or Latino.

To find out if a property qualifies for the $5,000 grant, click here.