HSBC Launches New Mortgage Assistance Program–CommunityWorks Opening Doors Grant

Rhea-AI Summary

HSBC has announced the launch of CommunityWorks Opening Doors, a new home loan grant program effective January 1, 2025. The initiative will provide up to $25,000 in down payment assistance for homebuyers in underserved counties across California, Florida, New York, New Jersey, Virginia, Washington, and the District of Columbia.

The program complements the existing HSBC CommunityWorks mortgage, which offers $5,000 in closing cost assistance, up to 97% financing of property value, and no PMI requirement. The initiative is supported by a $25 million, four-year partnership between HSBC and the National Community Reinvestment Coalition to advance opportunities in low- and moderate-income communities.

Positive

• Expansion of mortgage product portfolio with new grant program
• $25 million commitment over four years for community development
• Up to $25,000 in down payment assistance per eligible homebuyer
• No PMI requirement on CommunityWorks mortgages

Negative

• None.

Insights

Financial Analyst

This mortgage assistance initiative represents a strategic move by HSBC to expand its retail banking footprint in key U.S. markets while addressing housing affordability challenges. The $25,000 grant program, coupled with the existing $5,000 closing cost assistance and 97% financing option, positions HSBC competitively in the mortgage market. The $25 million partnership with NCRC demonstrates meaningful financial commitment. By eliminating PMI requirements and targeting underserved communities, HSBC could capture market share in areas traditionally dominated by regional banks and credit unions. This program aligns with regulatory Community Reinvestment Act (CRA) requirements while potentially generating new revenue streams through mortgage origination and servicing fees.

Market Research Analyst

The timing of this program launch in 2025 is strategic, targeting a period when housing affordability concerns are likely to persist. By focusing on seven key markets including major metropolitan areas like New York and California, HSBC is positioning itself in regions with high property values where down payment assistance is most impactful. The removal of PMI requirements provides a significant competitive advantage, as this insurance typically adds 0.5% to 1% to annual mortgage costs. This initiative could help HSBC capture a larger share of the first-time homebuyer market, particularly among young professionals and moderate-income families in expensive urban areas.

HSBC home loan grant expands the bank’s robust mortgage offerings.

NEW YORK--(BUSINESS WIRE)-- HSBC announced today the launch of HSBC CommunityWorks Opening Doors, a new program that offers home loan grants to homebuyers in underserved counties in California, Florida, New York, New Jersey, Virginia, Washington and the District of Columbia. It is effective January 1, 2025.

The new grant provides up to $25,000 in down payment assistance for homebuyers who are buying a home with an HSBC CommunityWorks mortgage, an existing product that offers $5,000 in closing cost assistance, financing up to 97% of a property’s appraised value, and no private mortgage insurance (PMI) requirement, among other benefits.

“HSBC is committed to supporting financial equity in the communities we serve by making home buying an achievable dream for individuals who might otherwise face obstacles in their journey to purchase a home,” said HSBC U.S. Head of Mortgages Leigh Smith. “Our premier international business serves a broad base of clients who live and work in the U.S. and abroad. This new grant allows us to broaden the aperture of the clients we support.”

HSBC CommunityWorks Opening Doors is funded by a $25 million, four-year partnership between HSBC and the National Community Reinvestment Coalition (NCRC) with the goal of advancing opportunities in low- and moderate-income communities.

For details regarding this program and location eligibility click here.

About HSBC

HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$3,099bn at 30 September 2024, HSBC is one of the world’s largest banking and financial services organizations.

HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through Wealth and Personal Banking, Commercial Banking, Private Banking, Global Banking, and Markets and Securities Services. Deposit products are offered by HSBC Bank USA, N.A., Member FDIC. It operates Wealth Centers in: California; Washington, D.C.; Florida; New Jersey; New York; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC North America Holdings Inc.

For more information, visit: HSBC in the USA

View source version on businesswire.com: https://www.businesswire.com/news/home/20241218601735/en/

Media enquiries

Matt Kozar

HSBC US Communications

Matt.Kozar@us.hsbc.com

Source: HSBC Bank USA, N.A.

FAQ

When will HSBC's CommunityWorks Opening Doors grant program begin?

The program will become effective January 1, 2025.

How much down payment assistance does HSBC's new CommunityWorks Opening Doors program offer?

The program offers up to $25,000 in down payment assistance for eligible homebuyers.

Which states are eligible for HSBC's CommunityWorks Opening Doors grants?

The program is available in underserved counties in California, Florida, New York, New Jersey, Virginia, Washington, and the District of Columbia.

What additional benefits does HSBC's CommunityWorks mortgage program provide?

The program offers $5,000 in closing cost assistance, financing up to 97% of property value, and no private mortgage insurance requirement.

How much has HSBC committed to the CommunityWorks Opening Doors partnership with NCRC?

HSBC has committed $25 million over a four-year partnership with the National Community Reinvestment Coalition.