New Fifth Third Community Mortgage Helps Pay Closing Costs

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    Bank Provides Low-Income Buyers an Affordable Path to Home Ownership

    CINCINNATI–(BUSINESS WIRE)–Fifth Third Bank is proud to introduce a new type of mortgage that
    provides an affordable option for low-income families and people
    purchasing in low-income communities. The Fifth Third Community Mortgage
    helps pay closing costs and some fees.1

    “We want to help build strong communities,” said Chris Shroat, head of
    Fifth Third Mortgage. “We know that making homes affordable is one of
    the best ways we can help improve our neighborhoods.”

    Fifth Third examined the biggest financial obstacles to home ownership,
    including assembling a down payment, paying closing costs and the lack
    of a consistent monthly payment. The Bank found that, while many
    potential home buyers could afford monthly payments and upkeep for a
    home, it was difficult to save enough for initial buying expenses.

    Fifth Third’s Community Mortgage will pay the lender’s closing costs and
    some fees, up to $1,500, for qualified buyers.1 The mortgage
    also can be combined with Fifth Third’s Down Payment Assistance program,
    which pays up to $3,600 to qualifying low-income buyers or those buying
    in low-income areas.2

    “Home ownership is one of the strongest indicators of a neighborhood’s
    strength and success,” Shroat said. “Fifth Third created a responsible
    mortgage, getting customers into an affordable property with less money
    out of their pockets and a sustainable down payment.”

    The Fifth Third Community Mortgage requires a down payment of about 3%.
    It discounts costs for financial services, and it doesn’t require
    buyer-paid private mortgage insurance. The low-income tract is
    determined by the federal government through U.S. Census data. Potential
    buyers should check with a Fifth Third mortgage loan originator to see
    if the area they are looking in qualifies for the credit.1

    Micheal and Sierra Friend used the Community Mortgage program this year
    to help buy their two-bedroom home in Central Ohio. The couple said
    without the program, they would still be renting an apartment, paying
    almost twice the cost they now pay for their mortgage and expenses.
    Fifth Third bought down the interest rate on the house and paid some
    other fees. In addition, the couple saves $28 a month in private
    mortgage insurance paid by the lender with the Bank’s Community Mortgage.

    “This is our first real home,” Sierra Friend said. “We’re so lucky that
    Fifth Third made sure we had a mortgage with payments we could not just
    afford, but could also still save money and plan for our future.”

    The Community Mortgage program is part of the Bank’s $32 billion
    Community Commitment. Fifth Third has delivered $8 billion in mortgage
    lending since 2016, an impact partly due to the success of the Bank’s
    Down Payment Assistance program, which provides up to $3,600 in down
    payment funding to LMI borrowers, or to potential homeowners making a
    purchase in a LMI census tract.2 The down payment program has
    helped over 1,800 homeowners achieve the American dream since 2017.

    About Fifth Third

    Fifth Third Bancorp is a diversified financial services company
    headquartered in Cincinnati, Ohio and the indirect parent company of
    Fifth Third Bank, an Ohio-chartered bank. As of March 31, 2019, Fifth
    Third had $168 billion in assets and operated 1,207 full-service Banking
    Centers and 2,559 ATMs with Fifth Third branding in Ohio, Kentucky,
    Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia
    and North Carolina. In total, Fifth Third provides its customers with
    access to approximately 52,000 fee-free ATMs across the United States.
    Fifth Third operates four main businesses: Commercial Banking, Branch
    Banking, Consumer Lending and Wealth & Asset Management. Fifth Third is
    among the largest money managers in the Midwest and, as of March 31,
    2019, had $394 billion in assets under care, of which it managed $44
    billion for individuals, corporations and not-for-profit organizations
    through its Trust and Registered Investment Advisory businesses.
    Investor information and press releases can be viewed at
    Fifth Third’s common stock is traded on the Nasdaq® Global Select Market
    under the symbol “FITB.” Fifth Third Bank was established in 1858.
    Deposit and Credit products are offered by Fifth Third Bank. Member FDIC.

    1 The loan payment may be the same, but the actual amount
    could vary depending on the price of insurance and taxes. To be eligible
    for the Fifth Third Community Mortgage, the property must be a one-unit,
    primary residence in one of the following eligible states: FL, GA, IL,
    IN, NC, OH, TN or WV, and either the property must be located in a low
    income U.S. Census tract or the borrower’s gross annual qualifying
    income must be at or below 80% of the area median income (AMI).
    Available for 30-year fixed-rate mortgage only. Adjustable rate
    mortgages (ARMs) are ineligible. 97% Loan to Value (LTV)/105% Closing to
    Value (CLTV). Maximum loan amount of $250,000. Homebuyer education is
    required by at least one qualifying borrower. Borrower must contribute
    at least $500 of own funds. Fifth Third Community Mortgage includes a
    0.25% origination fee (of loan amount) and application fee. Manual
    underwrite only.

    2 To be eligible for the down payment assistance of 3% of the
    home’s purchase price, up to $3,600, the property must be in one of the
    following eligible states: FL, GA, IL, IN, KY, MI, NC, OH, TN or WV and
    either the property must be located in a low income U.S. Census tract or
    borrower must meet the low income limit threshold based on the
    qualifying income per FFIEC website. Down payment assistance may be
    taxable as income and reported to the IRS. Consult your tax advisor. Not
    available with all loan products.

    Loans are subject to credit review and approval. Fifth Third Bank, 38
    Fountain Square Plaza, Cincinnati, OH 45263, NMLS# 403245. Fifth Third
    Bank was established in 1858. Member FDIC.


    Laura Trujillo