What is Chase ?
Chase is JPMorgan Chase & Co.'s U.S. consumer and commercial banking business, a major American financial services company with $3.8 trillion in assets and global activities.
Chase offers a wide range of financial services, such as personal banking, credit cards, mortgages, vehicle finance, investment guidance, small business loans, and payment processing, to more than 66 million American households and 5 million small businesses. Consumers have a choice in where and how they bank. 48 states and the District of Columbia have more than 4,700 branches combined with 16,000 ATMs, mobile, online, and phone service.
The $5,000 Homebuyer Award program from JPMorgan Chase's Home Lending is being extended to 5,000 Hispanic neighborhood's across 20 regions. Families can use this award to cover the down payment and closing fees for a home.
What is Chase Homebuyer Grant ?
The Chase Homebuyer Grant offers up to $5,000 towards closing costs and down payment to assist qualified homebuyers in the purchase of a primary residence. Homebuyers must buy a home in a particular geographic area to be eligible. Also, only specific loan kinds are eligible for the grant.
Chase first distributed the award to 6,700 census tracts with a majority of Black residents in 2021. Chase Bank has a program called the Chase Homebuyer Grant that gives eligible homeowners financial aid. The Chase Homebuyer Grant typically provides grants of up to $5,000 to assist with the down payment and closing costs of a home purchase.
Chase grant can be bundled with the $500 home buyer education bonus when purchasing a home with a DreaMaker mortgage and passing a course. It is available on DreaMaker, Standard Agency, FHA, and VA mortgages. The award is meant for homebuyers with low to moderate incomes, and qualifying restrictions may change depending on factors like geography, income, and credit score.
Key Facts of Chase First-time Home buyer Grant
- The DreaMaker, Standard Agency, FHA, and VA mortgage programs all qualify for the $5,000 Chase Homebuyer Grant.
- Closing expenses, a down payment, and/or mortgage points that can lower the interest rate can all be covered by this grant.
- Homebuyers buying a primary house in an area with a high minority population are eligible for a Chase grant of up to $5,000.
- When obtaining a home with a DreaMaker mortgage and finishing an eligible educational course, this grant may paired with the $500 Homebuyer Education Benefit.
- Only principal house purchase mortgages are qualified for the Chase Homebuyer Grant.
- Chase Homebuyer Grant eligibility applies to homes in specific census tracts.
How the Chase Homebuyer Grant Works ?
Homebuyers in communities with low homeownership rates may be eligible for the Chase Homebuyer Grant, which offers up to $5,000 to aid with closing costs and a down payment on a main house. There are 6,700 minority communities in which the house must be situated.
The U.S. government-designated low- to moderate-income communities are eligible for the Chase Homebuyer Grant, which offers aid for the purchase of a primary house in those areas. A further $500 subsidy could be available to homebuyers, increasing the total amount of aid to $5,500. The funds can be used for closing expenses or as a down payment on a home loan.
First, the grant is used to pay mortgage discount points, which lower your interest rate, monthly payment, and the total amount of interest paid over the course of the mortgage. Whatever grant money still available is used to cover fees, both Chase and non-Chase fees, and then your down payment. If you've already made a down payment, you can use the balance to pay closing fees.
Take an approved education course while applying for a DreaMaker mortgage through Chase, and you'll get an extra $500 towards your loan. A loan is not the same as a grant. Chase won't need you to pay them back. This grant is a component of a special purpose credit program (SPCP) created by Chase in line with applicable federal laws. It can be used to purchase real estate in areas where the U.S. Census has determined that the predominant population is Black, Hispanic, or Latino.
To speak with a Home Lending Advisor about whether a property is eligible for the $5,000 grant, contact or stop by a branch. Later this year, Chase intends to roll out a Homebuyer Help Finder search feature on Chase.com. Consumers will be able to enter an address to check if a property qualifies for the Chase Homebuyer Grant and discover any other potential financial aid.
Chase also keeps adding services to help all of its customers become homeowners :
1) Steps to Homeownership :
In collaboration with a few chosen nonprofits, JPMorgan has launched a new homebuyer education initiative. Consumers who are dedicated to take the required preparation steps but are not yet financially ready to buy a home are supported by Steps To Homeownership. This service provides prospective purchasers with financial health evaluations, credit counselling, and budgeting advice. In more than 20 areas throughout the country, Chase has created partnerships with charity organizations that offer housing counselling.
2) Benefit to Veterans Purchase Closing Cost :
For veterans, active military personnel, and their families purchasing a home with a VA mortgage loan, Chase just announced a $2,000 VA Purchase Closing Expense Benefit. Additionally, it can be combined with Chase's Homebuyer Grant, which can be up to $5,000 in neighborhood's that qualify, and the $5,000 Closing Guarantee.
3) Podcast "Beginner to Buyer" :
The Novice To Buyer podcast by Chase has Spanish episodes available on YouTube. With episodes that cover common anxieties or misconceptions about purchasing a home, including where to start and how to navigate what may feel like an overwhelming process, the podcast demystifies the home buying process and is especially beneficial for first-time buyers.
Who is Qualify for the Chase $5,000 Grant ?
Chase's $5,000 grant is not available to everyone. You must adhere to the following chase homebuyer grant eligibility requirements :
1) Use the grant money to purchase a primary residence :
You cannot use it to purchase a second home or an investment property.
2) Reside in a neighborhood that qualifies :
To receive the grant, you must purchase a property in an area with a large Black population. According to the most recent Census data, areas that have a majority of Black population may qualify. In the Country, there are more than 6,700 neighborhood's that qualify.
3) Use the funds for a down payment or closing costs :
The $5,000 must be used to cover your home-buying costs. Either put the money towards your down payment or use it for closing costs.
4) Having a certain type of mortgage :
If you obtain a mortgage through one of Chase's two programs, Standard Agency or DreaMaker, which are both designed for those who cannot afford a conventional mortgage, you may be eligible. If you obtain a mortgage backed by the Federal Housing Administration (FHA) or Veterans Affairs (VA), you are also qualified.
How to Qualify for Chase Additional $500 ?
If you match the following criteria, you could receive an additional $500 for a total of $5,500 :
1) Complete a certified education course :
You must enroll in a home-buying course from an certified educator. Ask your individual Chase lender for suggestions on free online teachers.
2) Obtaining a DreamMaker mortgage :
This 30-year-term Chase mortgage is for borrowers with lesser incomes. It offers less mortgage insurance and just demands a 3% down payment.
3) Fulfill the other requirements :
You must comply with all other grant program requirements in order to receive the full $5,500. Living in an area that qualifies, utilizing the funds for closing costs or a down payment, and purchasing a principal house all fall under this category.
Note :
You are still qualified for the standard DreaMaker $2,500 grant even if you obtain a mortgage through the program but do not meet the other requirements. If you are eligible for the new grant, you will receive $5,000 in addition to $500 for finishing the course.
Qualified Mortgages under Chase
The following mortgages are eligible for the Chase grant :
1) FHA loans :
They are federally insured loans for borrowers with bad credit, meagre savings, and low to moderate income.
2) VA loans :
These mortgage loans are available to veterans, active-duty military personnel, and some surviving spouses.
3) Chase DreaMaker Mortgage :
This first-time homebuyer mortgage is intended for borrowers with low to moderate incomes.
4) Standard Agency :
a Fannie Mae-approved low-down payment alternative for first-time buyers.
Note :
The grant might qualify as miscellaneous income for tax reasons, and a 1099-MISC form could be used to report it. You can better comprehend the potential effects on your taxes with the aid of a tax expert.
How to Apply for a Chase Homebuyer Grant ?
You have two options when applying for a Chase mortgage, you can do it online or in person at a nearby branch.
You can visit the Chase website or speak with a Chase representative directly to find out more information about the Chase Homebuyer Grant program. Before making any decisions about purchasing a home or obtaining financing, it is always a good idea to conduct your own research and weigh your options.
You can manage your account, download statements, and make payments online when you obtain a mortgage from Chase. Current customers can manage their loans via the Chase smartphone app.
Follow these steps to pre-qualify for a mortgage or finish a full application :
1) Begin early :
According to Chase, you should apply for a mortgage three months before you want to move into your new home.
2) Gather necessary documents :
There is a substantial quantity of paperwork involved in making a mortgage application. You'll be required to provide copies of your W-2s, bank and investment account statements, pay stubs, and other supporting documents. You must also send your two most recent tax returns if you are self-employed. You can obtain a checklist from Chase to help you arrange your paperwork.
3) Fill pre-qualification form :
Pre-qualification for a home loan is available both online and in person at a nearby branch. Basic facts about you, your income, and the house you want to buy are requested on the application.
4) Review estimate :
The conditions of the loan, such as your monthly payment, interest rate, and other costs, will be outlined in a loan estimate that Chase will deliver to you. Also, it will put you in touch with a home loan counsellor that can assist you in comprehending the loan conditions and managing the next steps.
5) Move forward :
Notify your home loan advisor that you wish to proceed with the mortgage application if the loan suits your needs and you find a house you'd like to buy.
Contact Chase
Chase doesn't offer 24/7 customer support. Customer service can be reached by phone, secure messaging, or by going to a nearby branch. A Chase home loan advisor is also available for appointments over the phone or in person. You can reach Chase by phone at (800) 447-1101 or through a secure message. However, just 37 states and the District of Columbia offer access to Chase's consultants.
Frequently asked questions
What is the required down payment amount?
There is no fixed quantity. There are several loan packages available today that can be modified to match your needs and available funds. Remember that private mortgage insurance (PMI) will be necessary for conventional loans with down payments of less than 20%.
What kinds of house loan choices are there if I wish to make less monthly payments?
With regard to DreamMaker, Federal Housing Administration (FHA), Veteran Affairs (VA), and Standard Agency loans, they provide competitive rates with choices for lower monthly payments.
Are there home assistance program to help with closing costs or down payments?
Yes, there are local programs that may help with your closing costs and down payment. Ask a Home Lending Adviser about your alternatives or find out more online.
How do I receive money from Chase?
Chase clients can send and receive money from friends and family using Chase QuickPay even if the receiver doesn't have a Chase account by using just the recipient's mobile number or email address. The only need for the recipient is that they have a savings or checking account at a bank that is a part of the Zelle network.
What are the benefits of Chase grant ?
When taking out a mortgage via Chase, borrowers who have JPMorgan investment accounts or Chase bank accounts may be qualified for rate breaks. Based on the balances in your accounts, you can be eligible for an interest rate decrease of up to 0.50%.
Chase guarantees that if you're a customer buying a house, you'll close on time in as little as three weeks or the lender will give you $5,000. You can get $500 by finishing an approved homebuyer education course if you use Chase's DreaMaker mortgage, a program that allows you to put as little as 3% down on a house loan.
What are the disadvantages of Chase First-time Home buyer Grant?
You must submit your information and agree to a credit check to find out if you qualify for a loan, Chase doesn't disclose its minimum income or credit score requirements online. Chase does not accept completely online mortgage applications, unlike some lenders. You can start an application on their website, but to finalize the application and loan conditions, you'll need to speak with a home loan expert in person or on the phone.
A house loan known as a USDA mortgage enables you to finance the entire cost of a home in a rural location. Although they're a common choice for those with low incomes, Chase doesn't provide this loan kind.