By AFRO Staff
Legacy Home Loans, one of the leading black-run mortgage companies in the country, recently announced a mortgage called “Closing the Gap.” The loan was created to help black Americans become homeowners and will target those seeking loans in six major cities across the country.
The Las Vegas-based company recently announced that the “Closing the Gap” loan will be offered in hopes of closing the homeownership gap found by comparing the number of white homeowners to the number of African American homeowners in the country. The loan is part of the Special Purpose Credit Program (SPCP), a special initiative for black people who are ready to buy property and need a mortgage.
Legacy announced that the program will be piloted in Charm City for black Baltimoreans, and in Atlanta, Chicago, Detroit, Memphis and Philadelphia to reach African Americans along the East Coast and Midwest.
“Borrowers must currently reside within a census tract of the six cities that
] 51% or more black population,” the company said in a press release issued by Chairman Ben Slayton. “However, there are absolutely no restrictions on where buyers can buy their new home.”
The Closing the Gap loan comes with a 1% down payment and a free property valuation. Participants will also receive a free home warranty, financial advice and assistance with home closing costs.
The program will work with borrowers using “credit guidelines based on factors such as timely rent, utility bills, phone and car insurance payments. Underwriting guidelines are based on the borrower’s income with a minimum credit score of 620,” according to information published by Legacy.
“Currently, there is a 30% ownership gap between blacks and whites, meaning that only four out of 10 black families own the home they live in,” according to the company’s loan announcement. “This contrasts with seven in ten white families owning the home they live in. Hence the 30% gap in homeownership.”
The company said it aims to invest $1 billion in black homeownership by the end of 2023 and “every year thereafter.”
Slayton said “there may be others offering similar SPCP loan programs, but make no mistake, Legacy Home Loans is where you’re celebrated – not just tolerated.”
Slayton has long established himself as a leader in the African-American community as America’s first African-American real estate agent, America’s first Century franchise broker owner, and America’s first Freddie Mac Multifamily Program Plus salesperson/repairer. . Slayton is a veteran of the mortgage industry and has founded, grown and sold several businesses over the years.
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