A Webster Bank branch in downtown Boston. Photo by James Sanna | Banker & Tradesman Staff
Webster Bank launched its first special purpose credit program Tuesday, which is aimed at helping low- to moderate-income first-time homebuyers who might not be qualify for traditional home loans, as well as homeowners who seek to refinance their mortgages in historically underserved areas.
The program is called “You’re Home” which provides an alternative to traditional loan program and terms, offering up to 97 percent financing for the purchase of properties located in defined underserved markets.
Webster Bank said it will refer to specific demographics in the geographic assessment areas and majority-minority census tracts within the bank’s footprint to identify eligible borrowers in these areas, both for purchase and refinancing transactions.
Webster Bank’s program is part of a multi-year $6.5 billion community investment plan to expand access to capital, provide loans, investments, technical assistance and financial services to individuals and small businesses in low- and moderate-income neighborhoods.
“Our overall goal for the bank’s community investment strategy is to increase access to affordable homeownership by reducing traditional credit barriers for those in low-to-moderate income communities. The SPCP program provides an opportunity for these underserved borrowers to qualify for mortgages under the SPCP’s more favorable loan terms. This is one important component of our community investment strategy,” Marissa Weidner, Webster Bank’s chief corporate responsibility officer, said in an email.
Weidner said the bank allocated $1 million toward its down payment assistance program.
Both Weidner and James Griffin, head of Webster Bank’s Consumer Banking, said the SPCP aims to help low- to moderate-income individuals and families get into homeownership, which would help them build generational wealth over time.
Webster’s other large competitors in Massachusetts, such as JPMorgan Chase, KeyBank and M&T Bank, have rolled out special purpose credit programs or first-time homebuyer programs in years past.
