New American Funding is launching a new initiative for first-time homebuyers.
Officials at the company announced the Pathway to Homeownership program on Monday.
Qualified borrowers in select areas can receive up to $8,000 in assistance to help them buy a new home.
The money distributed through Pathway to Homeownership is a grant, not a loan. Those who receive it do not need to pay it back, according to the announcement.
“One of the pillars of our company is helping members of underserved communities become homeowners,” said Patty Arvielo, Co-Founder and President of New American Funding.
“The Pathway to Homeownership initiative helps people from all walks of life who are otherwise qualified clear the initial hurdles that come with buying a house. We value our future, and with Pathway to Homeownership, we will be able to help more people than ever before buy a home.”
The grants may help to entice cautious first-time homebuyers back into the market now that prices are moderating.
First-timer homebuyers have been disproportionately impacted by both the pandemic housing rush and the affordability crisis. Now that prices are moderating, some are beginning to explore the market again.
New American, which laid off nearly 1,000 employees in 2022 due to the market correction, may be hoping to weather the slowdown with some of these newcomers.
Path to Homeownership is the latest initiative from New American aimed at expanding homeownership in underserved communities. The company also touts “Latino Focus,” an initiative for the Hispanic community, and the “New American Dream” initiative for the Black community.
According to the release, New American Funding is a Latina-owned independent mortgage lender with more than 160 locations across the nation. It carries a servicing portfolio of more than 243,000 loans for about $64.3 billion.
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