Fairway Independent Mortgage is rolling out a new program for first-time homebuyers in select communities, the company announced in a press release.
The program, called Fairway Community Access, will offer qualifying first-timers up to $7,000 towards the down payment and $500 in the form of an appraisal credit, should appraisal be necessary.
Borrowers who plan to purchase a home warranty will also receive a credit toward one year of warranty.
Buyers in Atlanta, Baltimore, Chicago, Detroit, Memphis, and Philadelphia will be eligible for the program. They must currently reside in the designated community, have no ownership interest in any other property, and the home must be their primary residence.
Fairway says FCA is designed to help buyers combat high-interest rates and closing costs that may be a barrier to homeownership.
“More and more people can no longer afford housing in their own communities,” said Cynthia Vasileiadis, Fairway’s Executive Vice President of Fair Lending.
“Housing prices are near all-time highs and rents are increasing at record rates. Fairway is taking action that will make it easier for residents to buy their first home in the local neighborhoods they already know and love.”
FCA comes at a time when many lenders are offering down payment assistance, rate-buy downs, and other incentives in an attempt to sway nervous buyers, especially first-timers who have been pushed out of the hot housing market.
Lenders have also expanded their offerings in minority communities as data reveals the seriousness of the racial homeownership gap. Chase opened its Homebuyer Grant program to nearly 5,000 Hispanic and Latino communities this year, while Bank of America touted a no-closing costs program for Black and Hispanic/Latino neighborhoods.