Supporting Sustainable Homeownership Through Housing Finance Agency Partnerships

Rhea-AI Summary

U.S. Bank has entered into partnerships with over 40 state and local housing finance agencies (HFAs) to provide HFA loans aimed at supporting first-time and low-to-moderate-income homebuyers. These loans are designed to offer downpayment and closing cost assistance, making homeownership more accessible. U.S. Bank has already helped 3,500 first-time homebuyers in Ohio through this initiative. The bank works with local lenders and agencies in collaboration with Fannie Mae, Freddie Mac, and Ginnie Mae to service these loans. This initiative underscores U.S. Bank's commitment to sustainable homeownership and providing ongoing support to homeowners.

Positive

• Assistance to 3,500 first-time homebuyers in Ohio.
• Partnerships with over 40 state and local housing finance agencies.
• Focus on sustainable homeownership for low-to-moderate-income buyers.

Negative

• None.

U.S. Bank partners with 40+ government agencies to originate and service HFA loans designed to address first-time homebuyer needs

NORTHAMPTON, MA / ACCESSWIRE / June 26, 2024 / U.S. Bank
Originally published on U.S. Bank company blog

Each year, state and local housing finance agencies work to strengthen their communities with homeownership opportunities via Housing Finance Agency (HFA) loans, which help pair credit-qualified borrowers with downpayment and closing cost assistance.

U.S. Bank has assisted 3,500 new clients who became first-time homebuyers with loans facilitated through the Ohio Housing Finance Agency.

HFA loans can open the door to homebuying for first-time and low-to-moderate homebuyers. U.S. Bank partners with more than 40 state and local housing finance agencies to originate and service these loans, stretching geographically from Alaska to Florida.

"At U.S. Bank, we've had a long-standing commitment to increase access to sustainable homeownership," said James Coreno, HFA division manager at U.S. Bank. "By partnering with state and local agencies, together we can help address the homeownership and housing issues affecting their state or local area."

In some cases, an HFA loan is originated by other local lenders that work closely with the local housing agencies offering the loan product in partnership with Fannie Mae, Freddie Mac and Ginnie Mae.

Once a loan is closed, U.S. Bank can then purchase and begin servicing it. This creates an opportunity for U.S. Bank to help the homeowner with questions or support surrounding their mortgage for the life of the loan, Coreno said.

"When we service an HFA loan, we become a trusted advisor to that client, whether they need help with setting up automatic payments and counseling on managing the escrow accounts for paying taxes and insurance or general loan servicing advise," he said.

For instance, in Ohio, U.S. Bank collaborates with the Ohio Housing Finance Agency. Just this year, U.S. Bank has assisted 3,500 new clients who became first-time homebuyers with loans facilitated through the Ohio agency.

"The Ohio Housing Finance Agency is proud to partner with U.S. Bank and lenders throughout the state to help Ohioans realize their dreams of homeownership," said Shawn Smith, executive director of the Ohio Housing Finance Agency.

"Our programs, which provide discounted mortgage rates and down payment assistance, help those borrowers that may be looking for a home but hesitate because of the high interest rates and the need for a down payment," Smith said. "Working with U.S. Bank, we're helping Ohioans navigate the homebuying process so they can be successful homeowners."

With inventory and affordability challenges in today's housing market, state and local housing finance agencies can be a resource for education and ultimately, down payment assistance and sustainable homeownership, he said.

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Contact Info:
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SOURCE: U.S. Bank

View the original press release on accesswire.com

FAQ

What is U.S. Bank's initiative for first-time homebuyers?

U.S. Bank has partnered with over 40 state and local housing finance agencies to provide HFA loans designed to assist first-time and low-to-moderate-income homebuyers with downpayment and closing cost assistance.

How many first-time homebuyers has U.S. Bank helped in Ohio?

U.S. Bank has assisted 3,500 first-time homebuyers in Ohio through its HFA loan program.

Which agencies collaborate with U.S. Bank for HFA loans?

U.S. Bank partners with Fannie Mae, Freddie Mac, and Ginnie Mae, along with over 40 state and local housing finance agencies to service HFA loans.

What is the aim of U.S. Bank's partnership with housing finance agencies?

The partnership aims to increase access to sustainable homeownership by offering downpayment and closing cost assistance to first-time and low-to-moderate-income homebuyers.

What services does U.S. Bank provide to HFA loan recipients?

U.S. Bank provides ongoing support including setting up automatic payments, managing escrow accounts for taxes and insurance, and general loan servicing advice.