CINCINNATI – Fifth Third Bank is proud to introduce a new type of mortgage that provides an affordable option for low-income families and people purchasing in low-income communities. The Fifth Third Community Mortgage helps pay closing costs and some fees.1
“We want to help build strong communities,” said Chris Shroat, head of Fifth Third Mortgage. “We know that making homes affordable is one of the best ways we can help improve our neighborhoods.”
Fifth Third examined the biggest financial obstacles to home ownership, including assembling a down payment, paying closing costs and the lack of a consistent monthly payment. The Bank found that, while many potential home buyers could afford monthly payments and upkeep for a home, it was difficult to save enough for initial buying expenses.
Fifth Third’s Community Mortgage will pay the lender’s closing costs and some fees, up to $1,500, for qualified buyers.1 The mortgage also can be combined with Fifth Third’s Down Payment Assistance program, which pays up to $3,600 to qualifying low-income buyers or those buying in low-income areas.2
“Home ownership is one of the strongest indicators of a neighborhood’s strength and success,” Shroat said. “Fifth Third created a responsible mortgage, getting customers into an affordable property with less money out of their pockets and a sustainable down payment.”
The Fifth Third Community Mortgage requires a down payment of about 3%. It discounts costs for financial services, and it doesn’t require buyer-paid private mortgage insurance. The low-income tract is determined by the federal government through U.S. Census data. Potential buyers should check with a Fifth Third mortgage loan originator to see if the area they are looking in qualifies for the credit.1
Micheal and Sierra Friend used the Community Mortgage program this year to help buy their two-bedroom home in Central Ohio. The couple said without the program, they would still be renting an apartment, paying almost twice the cost they now pay for their mortgage and expenses. Fifth Third bought down the interest rate on the house and paid some other fees. In addition, the couple saves $28 a month in private mortgage insurance paid by the lender with the Bank’s Community Mortgage.
“This is our first real home,” Sierra Friend said. “We’re so lucky that Fifth Third made sure we had a mortgage with payments we could not just afford, but could also still save money and plan for our future.”
The Community Mortgage program is part of the Bank’s $32 billion Community Commitment. Fifth Third has delivered $8 billion in mortgage lending since 2016, an impact partly due to the success of the Bank’s Down Payment Assistance program, which provides up to $3,600 in down payment funding to LMI borrowers, or to potential homeowners making a purchase in a LMI census tract.2 The down payment program has helped over 1,800 homeowners achieve the American dream since 2017.
About Fifth Third
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio and the indirect parent company of Fifth Third Bank, an Ohio-chartered bank. As of March 31, 2019, Fifth Third had $168 billion in assets and operated 1,207 full-service Banking Centers and 2,559 ATMs with Fifth Third branding in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia and North Carolina. In total, Fifth Third provides its customers with access to approximately 52,000 fee-free ATMs across the United States. Fifth Third operates four main businesses: Commercial Banking, Branch Banking, Consumer Lending and Wealth & Asset Management. Fifth Third is among the largest money managers in the Midwest and, as of March 31, 2019, had $394 billion in assets under care, of which it managed $44 billion for individuals, corporations and not-for-profit organizations through its Trust and Registered Investment Advisory businesses. Investor information and press releases can be viewed at www.53.com. Fifth Third’s common stock is traded on the Nasdaq® Global Select Market under the symbol “FITB.” Fifth Third Bank was established in 1858. Deposit and Credit products are offered by Fifth Third Bank. Member FDIC.
Loans are subject to credit review and approval. Fifth Third Bank, 38 Fountain Square Plaza, Cincinnati, OH 45263, NMLS# 403245. Fifth Third Bank was established in 1858. Member FDIC, Equal Housing Lender.