Fifth Third Bank Notes Programs Available for First-time Homebuyers

Jun 26, 2023 10:00 AM ET
Parents playing soccer with child and dog outside of house

Most states offer first-time homebuyer programs. There is down payment assistance1 and other tools to get you into a home. For example, Fifth Third Bank customers may be eligible for down payment assistance if they qualify based upon income level and by purchasing a property to be used as their primary residence in a low- or moderate-income census tract. Down payment assistance up to $3,600 can be made or is potentially available.

Fifth Third's Community Mortgage2 aims to make homeownership more accessible to more people. Low-income families often face multiple barriers to buying a home, with saving for a down payment and paying for closing costs at the top of the list. The Community Mortgage can make a big difference by decreasing the amount of cash that homebuyers need for a down payment – only 3 percent of the purchase price – while also providing eligible buyers with a credit they can put toward closing costs.

Depending on where you live, there may be state, county or city down payment programs available to you. The programs and eligibility range, but can be as high as $50,000 in down payment assistance, which can make a significant impact when buying a home.

Your mortgage loan officer can assist in finding programs specific to your area, and The Mortgage Reports offers a 2023 guide to down payment assistance in the U.S. Here are some regional and state-based programs to consider:

  • The East Tampa CRA Down Payment Assistance Program offers down payment assistance in forgivable loans up to $50,000 to eligible homebuyers who would like to purchase a home within the East Tampa footprint.
  • The Homestretch Down Payment Assistance Program in Gwinnett County, Georgia, can provide down payment assistance up to $7,500 to income-eligible, first-time homebuyers who have the capacity to purchase a home but lack the money needed for a down payment.
  • The National Fair Housing Alliance offers the Inclusive Communities Fund which reinvests in communities that have been harmed by discriminatory practices through grants that go directly to families and into neighborhoods.
  • The city of East Chicago in Indiana provides the Homeownership Incentive Program to attract homebuyers earning moderate incomes to purchase a new home. The program provides up to $25,000 in down payment assistance.
  • Louisville offers the Metro Down Payment Assistance Program which provides low- to moderate-income homebuyers with down payment and closing cost assistance for purchasing a home in the Louisville Metro area.
  • The National Faith Homebuyers has down payment assistance programs for Detroit and surrounding communities.
  • The Downtown Housing Improvement Corporation of Wake County in North Carolina provides The Affordable Homeownership Program offers forgivable, no monthly payment loans up to $50,000 to low- to moderate-income households.
  • In Cleveland, the Mayor's Neighborhood Transformation Initiative offers up to $20,000 in down payment assistance to eligible homes in the Glenville-Circle North neighborhood.
  • Community Works Carolina’s Greenville County Homebuyer Assistance Program can provide up to $10,000 in down payment assistance to qualified applicants.
  • The Housing Fund in Tennessee has its Down Payment Assistance Program that offers up to a $35,000 loan for down payment, prepaids, and closing costs to individuals and families.

1Down payment assistance may be taxable as income and reported to the IRS. Consult your tax advisor. Not available with all loan products.

2To be eligible for the Fifth Third Community Mortgage, the property must be a one-unit, primary residence, in one of the following eligible states: FL, GA, IL, IN, NC, OH, TN, WV, KY, MI and the borrower's gross annual qualifying income is at or below 80% area median income (AMI). Available for 30-year fixed mortgage only. Adjustable-Rate Mortgages (ARMs) are ineligible. 97% Loan to Value (LTV)/105% Combined Loan to Value (CLTV). Maximum Loan Amount of $250,000. Homebuyer education is required by at least one qualifying borrower. Borrower must contribute at least $500 of their own funds. Fifth Third Community Mortgage includes a .25% origination fee (of loan amount) and application fee. Manual underwrite only. Loans are subject to credit review and approval. Equal Housing Lender.