New Fifth Third Mortgage Program offers $1,000 toward closing costs for VA, FHA, 203K, USDA mortgages

Rhea-AI Summary

Fifth Third Bank is enhancing homeownership accessibility with a new program offering $1,000 towards closing costs for VA, FHA, 203K, and USDA loans. This initiative is available until November 15 and can be combined with existing down payment assistance programs. In addition, down payment assistance of up to $3,600 is available for qualifying buyers. The bank emphasizes the importance of a knowledgeable home financing team and provides practical tips for first-time homebuyers.

Positive

• Introduces $1,000 assistance for closing costs on specific mortgage loans.
• Available until November 15, encouraging timely applications.
• Can be combined with existing down payment assistance programs, enhancing financial support for buyers.
• Offers up to $3,600 in down payment assistance for eligible buyers.
• Provides educational resources and tips for first-time homebuyers.

Negative

• None.

Bank supports American dream of homeownership, offers tips for renting versus buying, steps for buying a home

CINCINNATI--(BUSINESS WIRE)-- Fifth Third Bank, National Association, is committed to improving and strengthening communities. To support affordable housing options, Fifth Third has announced it will pay $1,000 toward closing costs for VA, FHA, 203K and USDA Owner Occupied Purchase and REFI loans. This will lower the amount of cash needed for close and can be combined with other down payment assistance programs. This program is available until Nov. 15 across Fifth Third’s customer footprint.

“These benefits to support the American dream of homeownership are even more powerful when used together, or in addition to, our existing Fifth Third down payment assistance program,” said Jay Plum, head of Mortgage for Fifth Third Bank. “By advising customers on the best product and carefully structuring transactions to take advantage of all programs available, we have the ability to change lives every day. We take pride in being side by side with our customers all the way to the closing table.”

Learn more about Fifth Third’s down payment assistance programs, Community Mortgage or FHA loans.

Fifth Third also provides the following tips for those in the market to buy a home.

				Buying versus renting
				Should you rent or should you buy? There are a variety of factors to consider.
				As a rule of thumb, if you’re planning on staying for the next 5-7 years, then buying a home may be a better long-term solution. On the other hand, if you’re thinking about moving in the near future, renting may be the better choice.
				There are a variety of benefits of homeownership, including having the ability to paint, plant and make changes and renovations. Typically, that is not allowed when you rent. Also, when you own a home, it helps grow equity and you may be able to deduct mortgage interest on your taxes.
				Surprising to some, buying a home is typically cheaper than renting, depending on the location.
				Ultimately, you should weigh the pros and cons of buying or renting, but Fifth Third also offers a rent versus buy calculator to help.
				Steps for First-time Homebuyers
				Each first-time homebuyer wants something different. Some care about the quality of schools, others value nearby shopping and restaurants. Once those priorities are defined, here are some steps a new homebuyer can follow:
				Step 1
				Know your home financing team: When shopping for a home, it’s important to know the team you’re working with, including a real estate agent and banker. They will partner with you, answer your questions, and guide you through every step of the process. Their goal is getting you the keys to the home of your dreams. They can help you determine if you are truly ready to buy a home and what steps need to be taken. They will also assist in determining what is affordable for you and what you can quality for – and get you prequalified.
				Make sure you are working with an experienced real estate agent who understands the market where you are looking. They will understand the current market trends that will affect your ability to make a strong offer on a home.
				Step 2
				Start shopping: Now that you’re ready to buy, it’s time to find your dream home. This is the fun part! The one challenge is to keep track of all the features of all the homes you see in your search. Our advice is simple: Take notes and take pictures. Also factor in costs for upkeep and if you would want or need to do renovations.
				Step 3
				Making the offer: Now that you have found the home you want, it’s time to make an offer. Your real estate professional can assist you with making an offer to the seller (in most areas, this is called a purchase contract or purchase agreement). The seller then has a specific time frame to consider the offer and accept it or submit a counteroffer to you. Once you and the seller reach an agreement and the offer is accepted, you are ready to finalize your financing.
				Step 4
				Apply for a mortgage: If you’re buying your first home, remember that the mortgage you choose is just as important as the home you choose. So, it’s important that you work with the right mortgage lender.
				There is down payment assistance (DPA)2 and other tools to get you into a home. For example, Fifth Third customers may be eligible for down payment assistance if they qualify based upon income level and by purchasing a property to be used as your primary residence in a low- or moderate-income census tract. Down payment assistance up to $3,600 is available.
				Fifth Third's Community Mortgage1 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. This is where the Community Mortgage can make all the difference. This mortgage decreases the amount of cash that homebuyers need for a down payment to 3% of the purchase price, while also providing eligible buyers with a credit they can put toward closing costs.
				Step 5
				Closing time: The hard part is over, and it’s almost time to open the door to your new home. There are still some important details left to do. In the closing, the loan documents are signed, the balance of the loan costs are calculated, funds are disbursed, and the transaction is complete. Then you will receive the keys to your new home. Fifth Third offers a post-closing document to help with this process.
				Loans are subject to credit review and approval. Fifth Third Bank, National Association, 38 Fountain Square Plaza, Cincinnati, OH 45263, NMLS# 403245, FDIC Equal Housing Lender. Fifth Third and Fifth Third Bank are registered service marks of Fifth Third Bancorp.

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, National Association, a federally chartered institution. As of March 31, 2022, the Company had $211 billion in assets and operates 1,079 full-service Banking Centers, and 2,201 Fifth Third branded ATMs in Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, North Carolina, and South Carolina. In total, Fifth Third provides its customers with access to approximately 54,000 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, 2022, had $549 billion in assets under care, of which it managed $61 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.”

1To 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 own funds. Fifth Third Community Mortgage includes a .25% origination fee (of loan amount) and application fee. Manual underwrite only.

2Down payment assistance may be taxable as income and reported to the IRS. Consult your tax advisor. Not available with all loan products.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220615005271/en/

Beth Oates (Media Relations)

Beth.Oates@53.com | 313-230-9002

Chris Doll (Investor Relations)

Christopher.Doll@53.com | 513-534-2345

Source: Fifth Third Bank

FAQ

What assistance does Fifth Third Bank offer for homebuyers in 2023?

Fifth Third Bank offers $1,000 towards closing costs for VA, FHA, 203K, and USDA loans until November 15, 2023.

How can I qualify for down payment assistance from Fifth Third Bank?

To qualify for down payment assistance, buyers must meet specific income and property eligibility criteria.

What are the benefits of using Fifth Third's down payment assistance programs?

The programs can reduce the cash needed at closing and can be combined with other assistance options.

What tips does Fifth Third Bank provide for first-time homebuyers?

Fifth Third Bank recommends working with an experienced real estate team, knowing your financing options, and utilizing their resources like the rent versus buy calculator.