Fifth Third to pay fees for some home loans

Fifth Third Bank has launched a program to help boost home sales in depressed neighborhoods and among low-income buyers.

The bank unveiled its “Community Reinvestment Mortgage Special,” which pays some closing costs for low-income buyers and for any buyers in low-income neighborhoods.

Under the program, Fifth Third will pay processing, underwriting and application fees for qualifying buyers. Savings could range from $600 to $2,000, but most central Ohio borrowers will save $1,050, said Bob Brokaw, senior vice president for mortgage with Fifth Third in central Ohio.

“We’re trying to lend in the community we serve, and we think this will help some people overcome barriers to buying,” Brokaw said.

This type of assistance is always helpful, said Jim Dur-

ham, director of homeownership for the Ohio Housing Finance Agency.

“If you’re knocking off fees,” Durham said, “it is absolutely helping people get into a house.”

Buyers can qualify for the help in two ways:

By buying a home in a low-income neighborhood. Buyers can learn whether a home is in a low-income neighborhood by speaking with a Fifth Third lender or entering an address into the map function of the Federal Financial Institutions Examination Council website, www.ffiec.gov.

By having a household income that is less than half of the area’s median income. In central Ohio, the median income is $71,000, so those earning less than $35,500 are eligible, assuming they otherwise qualify for a loan.

The programs can be used with any type of loan, although they cannot be used with some down-payment assistance programs. Borrowers should check with the bank for details, Brokaw said.

Durham’s agency also offers down-payment assistance. If a buyer can couple down-payment help with fee reductions, it can mean the difference in buying or not buying for some clients, he said.

Fifth Third, like other lenders, has offered other programs to help low-income residents buy homes, but this is the first time the bank has waived fees, said Stefanie Steward-Young, Fifth Third’s Community Reinvestment Strategies director.

“This specific program is a little different,” she said. “It just provides one more tool to help customers achieve their goals in homeownership.”

Dispatch Reporter JD Malone contributed to this story.