Chase is offering a $5,000 grant for homebuyers in Black-majority neighborhoods
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- Chase has released a new $5,000 grant for homebuyers to put toward a down payment or closing costs.
- You can get an additional $500 if you have a Chase DreaMaker mortgage and complete an educational course.
- You may be eligible if you live in one of over 6,700 Black-majority neighborhoods in the US.
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What is Chase’s new grant program?
Chase is offering a $5,000 grant to qualifying homebuyers. You can put the money toward a down payment on your mortgage or toward closing costs.
If you get a DreaMaker mortgage through Chase and take a certified education course, you’ll receive an additional $500 toward your mortgage — coming to $5,500 total for your down payment or closing costs.
A grant is different than a loan. You pay back a loan, but a grant is essentially a gift. So you won’t have to repay Chase this money.
This grant is available to homebuyers in Black-majority communities. It’s part of Chase’s Path Forward program, which has a goal to help close the racial wealth gap in America.
The Path Forward plan commits to putting $30 billion over the next five years toward helping Black and Latinx families own homes, find affordable housing, build businesses, and access banking. Chase also states that diversifying the company’s workforce is part of this program.
In the $30 billion plan, Chase promises to put $8 billion toward originating mortgages for 40,000 Black and Latinx families. This new grant is part of that $8 billion commitment.
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How to qualify for the $5,000 grant
Not everyone is eligible for Chase’s $5,000 grant. You need to meet the following criteria:
- Live in an eligible neighborhood. You must buy a home in a primarily Black neighborhood to get the grant. Areas that have over 50% Black residents according to the most recent Census data can qualify. There are over 6,700 eligible neighborhoods around the US.
- Have a certain type of mortgage. You may qualify if you get a mortgage through Chase’s DreaMaker or Standard Agency programs, which are both meant for people who can’t afford a regular conventional mortgage. You’re also eligible if you get a mortgage backed by the Federal Housing Administration (FHA) or Veterans Affairs (VA).
- Use the money for closing costs or a down payment. The $5,000 must go toward your homebuying expenses. Either spend the money on closing costs or put it toward your down payment.
- Use the money to buy a primary residence. You can’t use the grant to buy a secondary residence or investment property.
How to qualify for an additional $500
You could receive another $500 for a grand total of $5,500 if you meet the following requirements:
- Have a DreaMaker mortgage. This Chase mortgage is for lower-income borrowers and has a 30-year term. It only requires a 3% down payment, and it offers discounted mortgage insurance.
- Complete a certified education course. You’ll need to take a homebuying course from a certified educator. Speak to your personal Chase lender for recommendations for free online educators.
- Meet the other criteria. To get the full $5,500, you must meet all the other requirements for the grant program. This includes living in an eligible neighborhood, using the money for closing costs or a down payment, and buying a primary residence.
If you get a DreaMaker mortgage and don’t meet the other criteria, you’re still eligible for the usual DreaMaker $2,500 grant. If you do meet the new grant qualifications, you’ll get $5,000 plus $500 for completing the course.
Laura Grace Tarpley is the associate editor of banking and mortgages at Personal Finance Insider, covering mortgages, refinancing, bank accounts, and bank reviews. She is also a Certified Educator in Personal Finance (CEPF). Over her four years of covering personal finance, she has written extensively about ways to save, invest, and navigate loans.
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