Click Here to Listen LIve at 6:00PM CST on Thursdays
LEGACY Home Loans, a Black-led mortgage banking firm, has unveiled a special purpose credit program (SPCP) that aims to close the Black homeownership gap.
According to the Las Vegas-based lender, there is a 30% homeownership gap between Black Americans and White Americans. This means only four out of 10 Black families own the home they live in, compared to seven out of 10 white homeowners.
Read more: Report reveals mortgage denial rate for Black borrowers
LEGACY said the new programs were developed to help close this 10% homeownership gap. The SPCP offers a 1% down payment with free appraisal, home warranty, pre-purchase and post-purchase homebuying counseling, as well as financial assistance with closing costs.
The company said its new loan program uses credit guidelines based on timely rent, utility bills, phone, and auto insurance payments. The underwriting guidelines are based on the borrower’s income, with a minimum credit score of 620.
“This loan program was developed by Black mortgage professionals for Black borrowers. No-one knows our people like we do,” said Ben Slayton, president and CEO of LEGACY Home Loans. “There may be others coming out with similar SPCP loan programs, but don’t be fooled. LEGACY Home Loans is where you are celebrated, not just tolerated.”
LEGACY’s goal is to fund $1 billion in loans to Black homebuyers by the end of 2023.
At Legacy Home Loans our experienced mortgage professionals view a new loan as an opportunity to help you purchase a new home or to show your the saving benefits of refinancing your current loan. But it is more than that! We believe it is a start of a long term relationship that can save the home owner thousands of dollars over the life of their loan. We represent many mortgage lenders and investors to help you find the best rate and the proper loan program for your new home. We do our best to make the loan application process simple and direct so there are no hassles. From home loan refinancing to home equity loans, we have the mortgage experience to ensure you the best results for your future and financial freedom!