KeyBank announced the launch of a program to assist in the purchase of housing for underserved communities.
The new program is called KeyBank Neighbors First. As part of this financial initiative, the bank provides loans for no more than $ 5,000 to real estate buyers who are representatives of underserved communities in Florida and 15 other states where there are branches of the institution. The relevant information is contained in a press release that was published by the lender last Thursday, July 6.
Dale Baker, president of Keybank Home Lending, says that ensuring equal access of all citizens to homeownership is a priority for a financial institution. He said that the bank reduces barriers, overcoming which is the way to acquire real estate. According to him, the financial institution ensures movement in this direction through products and services of responsible lending, educational support, and investment in various communities.
As part of the bank’s new program, loans will be provided to those consumers who purchase owner-occupied housing and apply for a mortgage with KeyBank. With the funds provided by the financial institution, the lender’s clients will be able to spend to cover the closing costs and other expenses that occur when purchasing a new home, for example, a mortgage or insurance in case of floods and other emergencies.
A survey conducted by KeyBank testified that more than 30% of respondents did not apply for information assistance about obtaining data on assistance programs when buying a home. According to representatives of the financial institution, potential buyers of real estate may not be aware of the existence of such programs at all.
The Bank recalls that the Fair Housing Act in the United States, which came into force 55 years ago, made it possible to make the process of selling, renting, and financing housing non-discriminatory. Borrowers living in underserved communities often do not have full access to resources, tools, and offers that facilitate the purchase of real estate.
KeyBank has previously launched other solutions for home purchase loans. In September last year, the financial institution launched a program, as a result of which, in the period from the first day of last autumn to June 30, 2023, customers who decided to become property owners received credit funds for more than $820 thousand.
Also, as of the end of June this year, KeyBank had applications for mortgage loans for $224 million and about $1.4 million in loans for home buyers.
From March 1, the moment the Key Opportunities mortgage loan began, to June 30, 2023, the bank financed loans for $3.7 million.
Industry studies indicate that the assessment of US residents of the prospects for buying a home has worsened. In January 2021, 30% of respondents assessed the purchase of real estate as a likely event. Two years later, this figure decreased to 23%. Experts say that the rise in housing prices reduces the level of optimism about the prospects of buying a home.
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