BMO Harris Bank today launched its Welcome Home Grant down payment program in two cities, Chicago and Phoenix, offering grants to eligible borrowers to assist with down payment and closing costs.
When paired with other home financing programs, eligible borrowers in Chicago can receive up to $20,000 in combined assistance, BMO said. With the help of these programs, Chicago homebuyers can contribute as little as $1,000 from their own funds and lock in a 30-year fixed-rate mortgage, it said.
Under the new grant program, eligible homebuyers purchasing in Majority Minority Census Tracts in the Chicago area can receive $3,500 in down payment and closing cost assistance, the bank said.
The Welcome Home Grant can be combined with other down payment and closing cost assistance programs, including BMO's $800 Spring promotional offer, $6,000 through the FHLBC Downpayment Plus Program, and up to $7,500 via the IHDA Access Deferred program, BMO said. In addition, borrowers in low or moderate income census tracts may be eligible for an additional $2,200 BMO grant.
Meanwhile, in Phoenix, the BMO Welcome Home Grant means eligible borrowers can receive up to $24,500 in assistance when paired with other programs. With the help of these programs, Phoenix homebuyers also can contribute as little as $1,000 from their own funds and lock in a 30-year, fixed-rate mortgage.
Under the new program, homebuyers purchasing in Majority Minority Census Tracts in the Phoenix area can receive $13,000 in down payment and closing cost assistance.
The grant in Phoenix can be combined with other down payment and closing cost assistance programs, including BMO's $800 Spring promotional offer, $6,000 through the FHLBC Downpayment Plus Program, and up to $2,500 via the Freddie Mac BorrowSmart program. In addition, borrowers in low or moderate income census tracts may be eligible for an additional $2,200 BMO grant.
Through a separate program, BMO also offers eligible borrowers in both locations $2,000 to assist with refinancing costs, it said.
In Chicago, the Welcome Home Grant program provides relief amid a challenging environment for homebuyers in Majority Minority Census Tracts; according to BMO Economics, while there has been relatively strong local job growth, housing affordability is an issue in the wake of rising rates and home price appreciation. In Chicago, home prices are up more than 12% year over year, which is the largest gain in 33 years.
"My administration and I welcome today's announcement from BMO Harris Bank, which will support our citywide mission of making homeownership a more accessible goal for Chicagoans — especially homebuyers in our INVEST South/West communities," Chicago Mayor Lori E. Lightfoot said. "This program also serves as a shining example of how collaboration between the public and private sector can produce the resources needed to help revitalize historically underserved communities."
Similarly, the program provides relief amid a challenging environment for Phoenix area homebuyers in Majority Minority Census Tracts; according to BMO Economics, home prices in Phoenix are up more than 32% year over year, making it one of the strongest housing markets in the country.
"As part of our ‘Purpose to Boldly Grow the Good’ in business and life, BMO is committed to supporting our communities and helping families make their dream of homeownership a reality," said Scott Freudenberger, vice president and head, Community Reinvestment at BMO Harris Bank. "Down payment and closing costs are a major hurdle for many families and our new Welcome Home Grant program is designed to help.”
BMO said the Welcome Home Grant program represents a further example of its efforts to advance an inclusive economic recovery in the United States. In 2020, it announced BMO EMpower — pledging $5 billion over the next five years to address key barriers faced by minority businesses, communities and families.
Funds are reserved for full applications between March 14 and July 14, 2022. For information on the program, please visit www.bmoharris.com.
Chicago-based BMO Harris Bank provides a broad range of personal banking products and solutions through more than 500 branches and fee-free access to over 40,000 ATMs across the United States.
