Chase Expands Homebuyer Grant in These 15 Housing Markets

Chase Home Lending’s latest changes

Chase Home Lending adjusted two programs to potentially increase credit access for borrowers.

The mortgage arm of banking super giant JPMorgan Chase, upped its home buyer grant amount and slashed the income limit for its low down payment mortgage.

However, you need to meet the requirements to be eligible, including living in one of 15 specific housing markets.

Chase boosts its homebuyer grant and 3% down mortgage

In 2021, Chase introduced its $5,000 Homebuyer Grant, part of a special purpose credit program (SPCP) developed for majority-Black or Latino census tracts around the country.

Recipients can use the funds to lower their interest rate with discount points, or put it toward closing costs and down payment. Since launching, over 8,600 borrowers received a combined $43.1 million in grant money, according to the bank. Borrowers must be purchasing a primary residence using Chase’s DreaMaker mortgage or a conventional, FHA, or VA loan.

Three years later, Chase increased the grant amount to $7,500 — an uplift that may help borrowers in a tough home buying environment — in 15 major housing markets.

Additionally, the bank removed the income limit for its DreaMaker mortgage program, which only requires 3% down.

“We are proud to provide resources that assist with affordability and access to credit to help those who are dreaming of homeownership make it a reality. Sustainable homeownership means security and also provides the opportunity to create generational wealth. What’s more, homeownership can uplift communities – when people own their homes, they have pride, accountability and sense of community,” Cerita Battles, head of community & affordable lending at Chase, said in a statement to TMR.

Chase offers its Homebuyer Grant for purchases of primary residence in communities identified by the U.S. Census as majority-Black, Hispanic or Latino. It’s available on DreaMaker, standard agency, FHA and VA mortgages.

DreaMaker is Chase’s affordable lending product for low-to-moderate income (LMI) borrowers. It can be used for the purchase or a no cash-out refinance of a one-to-four unit primary residence. The loan must be conforming and 30-year fixed rate only. The maximum qualifying income is limited to 80% of the current area median income (AMI). The AMI requirement doesn’t apply to the places where the Homebuyer Grant is available.

The table below shows the 15 housing markets where borrowers can access the $7,500 Homebuyer Grant (the $5,000 grant is also offered outside of these areas):

More help for home buyers

Buying and owning a home is both a financial milestone and huge commitment. It’s also a way for people to build wealth through equity.

If affordability is the obstacle standing between you and homeownership, you should look into federal and state aid. From first-time home buyer grants to down payment assistance (DPA), there are many ways to get financial help. You just need to find applicable programs and see if you qualify.

Also, some mortgages were specifically created with comparatively favorable borrowing terms to make home buying accessible to more people.

The table below outlines some popular low- and no-down payment mortgages:

The bottom line

If you’re looking to buy a house but don’t have enough saved, we have good news.

In addition to Chase’s Homebuyer Grant and DreaMaker mortgage outlined above, many grant and loan programs exist for borrowers who could use financial assistance.

If you’re ready to make the steps toward homeownership, contact a local lender today.