Fifth Third Offers New Down-Payment Assistance for Low-Income Loans

Fifth Third Mortgage has introduced a new down-payment assistance program in conjunction with Freddie Mac's Home Possible Advantage 3% down loan.

The program provides down-payment assistance to Fifth Third borrowers with qualifying incomes or who are purchasing homes in designated low-income areas. The assistance represents 3% of the purchase price, up to $3,600.

Fifth Third's program also can be combined with existing state and local programs aimed at assisting borrowers with down payments.

Freddie Mac's and fellow government-sponsored enterprise Fannie Mae's 3% down mortgage programs have not been heavily used but some banks like Fifth Third Bancorp have started marketing them more aggressively and through more innovative partnerships.

Wells Fargo in seeking an alternative to low-down-payment Federal Housing Administration-insured loans recently developed a program with Fannie modeled after the GSE's broader 3% down program, but with simpler qualifications.

Also Bank of America, Freddie Mac and Self-Help Federal Credit Union earlier this year launched a 3% down payment home loan.