TD Bank has launched “Home Access Mortgage,” a product designed to increase home ownership in the underserved communities within the bank’s footprint.
The program provides prospective buyers with an affordable mortgage option, including a $5,000 lender credit which does not require repayment, that borrowers can use for closing costs or toward a down payment on a home purchase.
It also offers more flexibility with a greater debt-to-income ratio and expanded underwriting requirements, as well as credit parameters that increase accessibility.
“The current housing market is highly competitive, making it exceedingly difficult for potential homebuyers, especially people of color, to contend if they have limited financial resources for a down payment or closing costs,” Michael Innis-Thompson, head of Community Lending and Development at TD Bank, said in statement.
“This mortgage offering is designed to ease that burden, provide more equity in the home lending process, and make the dream of homeownership more attainable for Black and Hispanic families,” Innis-Thompson added.
A recent TD survey revealed that 46% of respondents consider saving for a down payment to be a roadblock to purchasing their first home, including 44% and 45% of Black and Hispanic homebuyers, respectively.
Eligible borrowers must meet credit and income parameters and reside in one of the participating markets, but they are not required to be first-time homebuyers. Borrowers can use the product for both purchase and refinance transactions, and for various property types, including single-family residences, condos, and owner-occupied multi-family units.
“TD Home Access Mortgage is very much aligned with the Bank’s ongoing commitment to continually expand our product suite to meet the needs of communities within our footprint,” Innis-Thompson said.
“This product addresses the need to reduce barriers that so often slow the rate of homeownership in Black and Hispanic communities,” Innis-Thompson added. “And it also demonstrates our dedication to extending our culture of care and inclusion to our product design, finding meaningful and sustainable ways to support our customers.”