In an effort to expand mortgage credit to more consumers, BancorpSouth reports that it is now offering 0% down (i.e., 100% loan-to-value, or LTV), 30-year, fixed-rate mortgages to qualified borrowers through its Right@Home Mortgage Program.
The regional lender, which serves eight states, has been lowering or eliminating upfront costs for qualifying borrowers ever since introducing its Right@Home Mortgage in December 2015.
Borrowers either buying new homes or refinancing their existing mortgages through the program now represent a “substantial portion” of BancorpSouth’s total loans to low- to moderate-income borrowers, the bank reports.
With no lender fees, no private mortgage insurance and a minimum contribution of $500, the Right@Home mortgage is a very affordable loan program for qualified home buyers.
“BancorpSouth is committed to its ongoing consumer outreach efforts and providing access to affordable mortgage products for all consumers in our markets,” says Phil Sandoval, first vice president and community development lending manager for BancorpSouth, in a release. “The Right@Home mortgage features flexible criteria that can help qualified consumers achieve homeownership.”
To participate in the program, home buyer education and counseling are required.
BancorpSouth joins a growing throng of mortgage lenders trying to entice low- to moderate-income borrowers with loans requiring anywhere from 3% to 0% down.
In recent months, Quicken Loans and Guaranteed Rate have introduced 1% down programs, and big banks including Bank of America, Wells Fargo and JPMorgan have launched 3% down programs.
More recently, Fifth Third Mortgage announced that it is now offering 100% LTV mortgages by offering down payment and closing cost assistance to qualified borrowers.