Some banks offer zero-down financing.
As the Federal Reserve attempts to curb inflation by increasing interest rates, mortgage rates continue to rise. The home lending rate is now at 5.89 percent, the highest since the housing crisis of 2008.
At the same time, more banks are offering mortgages that do not require some first-time home buyers to make a large down payment. This is part of an effort to close the racial and ethnic homeownership gap.
Bank of America recently announced “zero down payment” loans for first-time homebuyers in Black and Hispanic neighborhoods who meet certain income requirements. Two others, JPMorgan Chase and TD Bank, have similar programs.
The “zero down” loans are a bit of a misnomer, however. They do technically require a down payment but the bank is offering grants of as much as $15,000 to cover it.
As the Lord Leads, Pray with Us…
- For Chairman Powell and the members of the Federal Reserve as they continue to raise interest rates to slow inflation.
- For wisdom for U.S. economic officials as they provide analysis and recommendations to the president and his administration.
- For discernment for U.S. banking and lending officers as they make concessions to assist first-time home buyers.
Sources: CBS News, Axios
