Special Purpose Credit Programs and home buyer education take center stage this Fair Housing Month
CLEVELAND, April 8, 2024 /PRNewswire/ — As part of its commitment to helping clients on their individual financial journeys, KeyBank (NYSE:KEY) continues to offer resources and education for those seeking to achieve the dream of homeownership.
KeyBank’s Special Purpose Credit Programs1 and home buyer educational initiatives aim to increase the accessibility and affordability of the homebuying process at a time when a significant portion of Americans feel that homeownership is beyond their reach. According to KeyBank’s 2024 Financial Mobility Survey2, approximately one-third (29%) of Americans who do not own a home and do not plan on purchasing one in the next 12 months feel that homeownership is not attainable.
“We recognize that the homebuying process can feel daunting and we are committed to helping our clients achieve their financial goals,” said Dale Baker, President of KeyBank Home Lending. “KeyBank continues to invest in resources, programs and community partnerships to help clients understand their unique financial pictures, address the barriers to homeownership, and improve their overall financial resiliency.”
Special Purpose Credit Programs ease burden of homebuying costs
The KeyBank Home Buyer Credit3 offers homebuyers purchasing eligible properties in designated communities up to $5,000 to be used towards closing costs and prepaid fees that may come with financing their new home. From the program’s inception in September 2022, through March 26, 2024, KeyBank funded approximately $1.7 million in Home Buyer Credits, helping 382 clients achieve their dream of homeownership in the qualifying areas where the program is available. Also, as of March 26, 2024, KeyBank has $322.9 million in mortgage loan applications for approximately $2.8 million in Home Buyer Credits to assist 646 clients (inclusive of the funded credits shared above) on their path to homeownership in these locations.
The Key Opportunities Home Equity Loan4 provides affordable terms for borrowers with qualifying properties to refinance their primary residence to a lower interest rate, consolidate debt, finance home improvements, or tap into their equity when needed. This loan features a fixed rate, with no origination fee, and a first or second lien option for loans up to $100,000. Since the program began on March 1, 2023, through March 26, 2024, KeyBank funded $10 million in loans, helping 202 clients in designated communities refinance for better terms or access equity in their primary home.
Similar to the Home Buyer Credit, KeyBank Neighbors First Credit5 is designed to help homebuyers purchasing eligible properties in qualified areas across Key’s footprint and in Florida by providing up to $5,000 to be used for closing costs and to pre-paid fees that may come with financing a new home. Since the launch of the program on July 1, 2023, through March 26, 2024, KeyBank funded approximately $575,000 in Neighbors First credits, helping 115 clients achieve their dream of homeownership in the qualifying areas where the program is available. Also, as of March 26, 2024, KeyBank has $35.7 million in mortgage loan applications for approximately $1.1 million in Neighbors First Credits to assist 223 clients (inclusive of the funded credits shared above) on their path to homeownership in these locations.
Through the KeyBank Home Buyer Credit and KeyBank Neighbors First Credit Special Purpose Credit Programs, Key has $5,000 in purchase credits available to be used towards closing costs and prepaid fees, in over 9,500 census tracts.
Partnerships improve access to home buyer education and resources
The KeyBank 2024 Financial Mobility Survey found that among respondents who purchased a home in the last 12 months or plan to do so in the next 12 months, 1 in 3 (30%) say their ability to understand the homebuying process influenced their purchasing decision.
To this end, KeyBank committed more than $1 million in 2023 to homebuyer education and other community support. Starting in 2022, Key also committed to investing more than $25 million over a five-year period in grants, fee waivers, marketing and branches to increase mortgage lending in majority-minority neighborhoods. Partnerships and initiatives with the National Association of Hispanic Real Estate Professionals (NAHREP®) and Operation HOPE to advance homeownership through financial education are also underway.
“At KeyBank, we believe in turning aspirations into achievable milestones,” said Rachael Sampson, KeyBank’s Head of Community Banking for the Consumer Bank. “Our continued investments in financial education and homebuying resources for clients in underserved communities reflect our dedication to fostering financial empowerment and making homeownership attainable for all.”
Learn more about KeyBank’s home lending opportunities and programs, determine whether a property qualifies for Special Purpose Credit Programs, or get started on the journey to homeownership by visiting key.com/communitylending. For details on the current state of local markets and to answer any questions you may have, including whether a property qualifies for Key’s Special Purpose Credit Programs, KeyBank Mortgage Loan Officers are available to help.
About KeyCorp
KeyCorp’s roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation’s largest bank-based financial services companies, with assets of approximately $188 billion at December 31, 2023.
Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of approximately 1,000 branches and approximately 1,200 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank Member FDIC.
Mortgage and Home Equity Lending products offered by KeyBank are not FDIC insured or guaranteed. Equal Housing Lender. NMLS# 399797. CFMA #240325-2518716
NOTICE: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. All home lending products, including mortgage, home equity loans and home equity lines of credit, are subject to credit and collateral approval. Not all home lending products are available in all states. Hazard insurance and, if applicable, flood insurance are required on collateral property. Actual rates, fees, and terms are based on those offered as of the date of application and are subject to change without notice.
1 Special Purpose Credit Programs are, generally, programs that are established to meet special social needs or the needs of economically disadvantaged persons by extending credit to persons who would probably be denied credit or would receive it on less favorable terms, under certain conditions. See 15 U.S.C. § 1691(c)(1)-(3); 12 C.F.R. § 1002.8(a).
2 The KeyBank 2024 Financial Mobility Survey was conducted online by Schmidt Market Research. 1,000 Americans, ages 18-70, with sole or shared responsibility for household financial decisions, who own a checking or savings account, completed the survey in September 2023. The survey asked respondents about their financial attitudes, understanding, awareness and actions over the prior year.
3 Available on primary residence first lien purchases only. Property must be located in an eligible community as determined by KeyBank. Eligible Communities are subject to change without notice. Additional terms or restrictions may apply. Ask us for details.
4 Loan features reduced interest rate and no origination fees. Available on existing primary residence and loans up to $100,000. First or second lien only. Loan must close in a branch. Property must be located in an eligible community in KeyBank’s retail footprint. Additional terms or restrictions may apply. Ask us for details.
5 Available on primary residence first lien purchases only. Property must be located in an eligible community in KeyBank’s retail footprint or Florida. Eligible communities are determined by KeyBank and subject to change without notice. Additional terms or restrictions may apply. Ask us for details.
SOURCE KeyBank
