KeyBank Launches Neighbors First Credit to Help Make Dream of Home Ownership a Reality
CLEVELAND, July 6, 2023 /PRNewswire/ -- Today, KeyBank (NYSE: KEY) announced the launch of its third Special Purpose Credit Program1 – KeyBank Neighbors First CreditSM – which can help make the dream of home ownership a reality by providing up to $5,000 to homebuyers for the purchase of eligible properties.
A recent Fair Housing Month poll from KeyBank found that nearly 31% of respondents did not seek out any information or resources on home buyer assistance programs. This may be because many homebuyers, particularly those with lower incomes, could be unaware of the existence of these offerings and the important role banks can play in providing access to them. While the Fair Housing Act of 1968 set a precedent to make the sale, rental, and home financing process nondiscriminatory, borrowers in underserved communities are often at a disadvantage when it comes to awareness of tools, resources, and affordable offerings available to help them achieve home ownership.
The KeyBank Neighbors First Credit is designed to help homebuyers in underserved communities by providing credits up to $5,000 to be used for closing costs and to prepay costs that may come with a new home. This includes mortgage, flood and hazard insurance, escrow deposit, real estate taxes and per diem interest.
To qualify, a client must:
- Finance the purchase of an owner-occupied home through a residential mortgage with KeyBank; and
- The home must be located in an eligible community located in KeyBank's retail footprint and Florida. Contact a local KeyBank branch or Mortgage Loan Officer for details.
"The Neighbors First Credit is the latest in a series of steps we are taking to help the communities, in which we live and work, thrive," said Dale Baker, President of KeyBank Home Lending. "At KeyBank helping all residents have equal access to homeownership is a priority. To do our part, KeyBank is reducing the barriers of homeownership through responsible lending products and services, educational support, and direct investment into the diverse communities we serve."
The Neighbors First Credit is available in over 2,820 census tracts across Key's 15 state footprint plus Florida potentially serving more than 10.5 million people who live there on their path to home ownership. Learn more about the Neighbors First Credit here.
The launch of the Neighbors First Credit follows Key's recent Fair Housing month announcement introducing the Key Opportunities Home Equity Loan and the expansion of the KeyBank Home Buyer Credit® to up to $5,000 in value the for qualifying properties in eligible communities. With both the Neighbors First Credit and KeyBank Home Buyer Credit in place, Key will have purchase credits available in over 9,500 census tracts, covering areas where 10 percent of the U.S population lives.
- Since the KeyBank Home Buyer Credit program began on Sept. 1, 2022. Through June 30, 2023, KeyBank has funded approximately $823,000 in homebuyer credits, helping 205 clients achieve their dream of homeownership in the qualifying areas where the program is available. Also, as of June 30, 2023, KeyBank has $224 million in mortgage loan applications for approximately $1.4 million in Home Buyer Credits, to assist 361 clients (inclusive of the funded credits shared above) on their path to homeownership in these locations.
- Since the Key Opportunities Home Equity Loan began on March 1, 2023, through June 30, 2023, KeyBank funded $3.7 million in loans, helping 69 clients secure loans for their primary home in designated communities.
As shared previously, Key has also committed to investing more than $25 million in grants, fee waivers, and marketing over five years to increase mortgage lending in majority-minority neighborhoods, as well as more than $1 million to homebuyer education and other community support.
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).
NOTICE: This is not a commitment to lend or extend credit. Conditions and restrictions may apply. Information and offers are subject to change without notice. All loans are subject to credit and collateral approval. Not all loans or products are available in all states. Mortgage and Home Lending products offered by KeyBank are not FDIC insured or guaranteed.
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 $198 billion at March 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 1,300 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 is Member FDIC. Mortgage and Home Equity Lending products offered by KeyBank are not FDIC insured or guaranteed. NMLS #399797
Media Contact : Karen Crane, KeyBank