Homebuyers in Indiana Now Offered Grants by Lenders to Reside in Designated Zones
BMO Bank’s Welcome Home Grant is making homeownership dreams a reality for many. This remarkable program offers eligible customers up to $13,000 in grant money which does not need to be repaid. It has been especially beneficial for young homeowners like Atanai Nunez-Samaniego, a 22-year-old Indianapolis native who bought a house in her beloved hometown without using any of her hard-saved money at closing.
Born and raised in Indianapolis, Nunez-Samaniego is a firm believer in her city’s potential. Particularly, she sees great opportunities for growth and development in the city’s east side. After years of diligently setting aside money from her paycheck, she made the significant decision to buy a house in this area.
“Every paycheck, I would save around $200 to $300, which I planned for my future home,” said Nunez-Samaniego. However, her years of financial prudence paid off in an unexpected way when she discovered BMO Bank’s Welcome Home Grant. This meant that instead of having to dip into her savings, she could take advantage of the grant at the closing of her home.
Initially, she anticipated needing $12,000 to $15,000 for the closing. However, due to BMO’s Welcome Home Grant, she was pleasantly surprised when she didn’t have to bring any money to the closing.
Currently, BMO’s grant is available in several markets, including Phoenix, Chicago, and Minneapolis, and it can be applied towards closing costs or a down payment. According to Jeffrey Leising, an executive at BMO, pairing such financial aid with financial literacy can create an avenue of opportunities. Leising pointed out that the homeownership gap among minorities in Indianapolis and surrounding areas is a significant and persistent issue, having seen little improvement over the past five decades.
The Welcome Home Grant is applicable to residents of Marion County and the counties contiguous to Marion, often referred to as doughnut counties. To qualify, the buyer needs to be an occupant of the home, and the house should be situated in a low to moderate census tract.
However, BMO isn’t the only lender providing such grants. Bank of America offers a similar program. Kate Wood, a financial expert from NerdWallet, explained that while these types of programs aren’t exactly new, what’s changed is the lenders’ increased advocacy to enhance homeownership in underserved regions.
With these grants, homeowners like Nunez-Samaniego can continue to save their hard-earned money and prepare for the financial requirements that homeownership may bring in the future. This contributes not only to individual financial stability but also to the overall economic development of underserved areas.
