Fifth Third's mortgage division has launched the Community Reinvestment Mortgage Special, a program designed to cover closing costs for mortgage customers buying or refinancing homes in low-income areas.
Through the program, Fifth Third pays the lender's closing costs, between $600 and $2,000, the $142 billion-asset company said in a news release. The program also extends assistance to low-income buyers financing a purchase in any of the 12 states where the bank has branches.
Closing costs covered by the Community Reinvestment Mortgage Special include origination fees, processing, underwriting, commitment and certain application fees. Fifth Third also does not impose income limits for consumers buying in low-income areas.
"We want to encourage people to revitalize some of our most vulnerable neighborhoods," Michelle Van Dyke, president of Fifth Third Mortgage, said in a Sept. 28 news release. "Homeownership is one of the strongest indicators of neighborhood strength and success."