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Chase Home Lending Expands Homebuyer Grant For Hispanic Community

Katie Jensen
Nov 04, 2022
Hispanic Fam

The $5,000 grant can be applied toward two of the biggest barriers to homeownership: down payment and closing costs. 

KEY TAKEAWAYS
  • Expands the $5,000 grant program to nearly 5,000 Hispanic & Latino communities in 20 U.S. markets.
  • First rolled out the grant in 6,700 predominantly Black census tracts across the country in 2021.
  • Homeownership rate for Hispanic/Latino people was 48.4% in 2021, yet the Urban Institute expects them to account for 70% of homeownership growth over the next 20 years.

Chase Home Lending is expanding its $5,000 Homebuyer Grant program to nearly 5,000 Hispanic and Latino communities in 20 markets across the country, the company said.

The grant can be applied toward two of the biggest barriers to homeownership — the upfront cash needed for a down payment and closing costs.

“This grant supports Chase’s long-term, comprehensive commitment toward uplifting and empowering Black, Hispanic, and Latino neighborhoods,” said Cerita Battles, head of Community and Affordable Lending at Chase. “The industry continues to be challenged to think differently in how we approach racial equity and closing the wealth gap through homeownership. We believe expanding our $5,000 Homebuyer Grant program is a step in the right direction and a direct investment in American families and the diverse communities in which they live and thrive.”

Chase first rolled out the grant in 6,700 predominantly Black census tracts across the country in 2021. Majority-Black communities were prioritized because of the stark gap in the homeownership — 44.6% for Black people, compared to 74.2% for White people, according to the 2021 State of Housing in Black America report from the National Association of Real Estate Brokers.

The rate for Hispanic and Latino people was 48.4% in 2021, yet the Urban Institute expects the group to account for 70% of homeownership growth over the next 20 years. Additionally, 40.8% of Latino adults under the age of 45 are mortgage-ready today, according to the 2021 State of Hispanic Homeownership from the National Association of Hispanic Real Estate Professionals.

“The Chase Homebuyer Grant helps alleviate some of the stress that comes with down payment and closing costs," said Fredy Peñaranda, owner of Fredy Peñaranda Team at eXp Realty, based in Houston. "Those are two of the biggest hurdles I see clients struggle with, even when they are putting down less than 20%. The grant truly makes housing more accessible for buyers in Black and Hispanic communities — even more so when coupled with other Chase resources or grants available at the local level.”

The grant is part of the special purpose credit program (SPCP) that Chase developed in accordance with federal legal requirements. It’s available for purchases of properties in communities identified by the U.S. Census as majority-Black, Hispanic, or Latino.

Chase also added resources to support homeownership for all customers: 

  • Veterans Purchase Closing Cost Benefit: Chase recently announced a $2,000 VA Purchase Closing Cost Benefit for veterans, servicemembers, and their families purchasing a home with a VA mortgage loan. It’s also stackable with Chase’s Homebuyer Grant, up to $5,000 in eligible neighborhoods, and the $5,000 Closing Guarantee.
  • Steps To Homeownership: Chase rolled out a new homebuyer education program in partnership with select nonprofits. Steps To Homeownership is intended to support consumers who are not yet financially ready to purchase a home, but are committed to taking the necessary steps to prepare. Budgeting guidance, credit counseling, and a financial health assessment are offered to prospective buyers through this program. Chase has forged partnerships with nonprofit organizations that provide housing counseling in more than 20 markets nationwide.
  • Beginner To Buyer Podcast: Chase has launched Spanish episodes of its Beginner To Buyer podcast on YouTube. The podcast breaks down the homebuying process — especially helpful for first-time buyers — with episodes that address common fears or misconceptions about buying a home, including where to start and how to navigate what can feel like an overwhelming process.
Published
Nov 04, 2022
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