BBVA offers certain FHA and VA borrowers up to $3,500 in added savings

The bank, which presently offers the HOME program, or Home Ownership Made Easier, is offering a similar contribution arrangement for qualifying FHA¹ or VA² home loan borrowers as it does with HOME. Qualifying borrowers can receive a total of up to $3,500 in assistance from BBVA toward closing costs and other assistance for FHA loans and up to $2,500 for VA loans.

According to Mortgage Banking Segment Executive Joe Cartellone, the programs underscore the bank's effort to create opportunities for those who most need it.

Cartellone: It's our goal as a bank to make sure that those who want to move into this aspect of their financial lives can.

"Home ownership can seem far out of reach, particularly for LMI borrowers, when you look at all the costs associated with simply borrowing money," Cartellone said. "That's not the case. There are an abundance of programs available, especially at BBVA, for borrowers who qualify. It's our goal as a bank to make sure that those who want to move into this aspect of their financial lives can and can do it in a way that puts them on the best financial footing."

To receive assistance for FHA or VA loans, the property must either be located in a low or moderate income census tract, or the income of all applicants on the loan must be less than 80% of the Federal Financial Institutions Examination Council (FFIEC) Median Family Income, which in the areas in which the bank operates is between $38,900 and $134,800.

For qualified applicants, the bank will contribute a combination of waived fees, lender credits and pricing credits that can be used to offset various closing costs such as appraisal and title insurance costs as well as to cover prepaid items such as homeowners insurance. The borrower may also use the pricing credit to lower the interest rate. The total bank assistance varies by loan size and is available up to $3,500 for HOME and FHA and $2,500 for VA.

Cartellone: This is just one more example of the bank going the extra mile to help build up [our] communities, and put residents on firm financial footing.

"BBVA committed long ago to invest and create opportunities in the communities in which it operates," Cartellone said. "This is just one more example of the bank going the extra mile to help build up those same communities, and put residents on firm financial footing."

For information about FHA and VA loans, click here.

For more information on the bank's government mortgage loan products, click here.

Click here to learn more about the bank's HOME program.

Click here to read more homeownership articles on our personal finance blog, MoneyFit.

All loans subject to program eligibility, collateral and underwriting requirements and approvals, including credit approval..

1 Certain restrictions apply. To receive assistance for LMI loans, the property must either be located in a low or moderate income census tract, or the income of all applicants on the loan must be less than 80% of the FFIEC Median Family Income. Total maximum assistance, including all lender credits, bank paid fees, waived fees, and pricing assistance cannot exceed $3,500. A lender credit of $500 will be applied at closing. Underwriting and processing fees will be waived (an $1,100 value). Additional assistance is applied via a price adjustment and varies by loan size. For Purchase transactions, lender credits cannot be used to offset fees or charges already being paid by the property seller in accordance with the sales contract. Down payment requirements vary by county and FHA guidelines.

2 Certain restrictions apply. To receive assistance for LMI loans, the property must either be located in a low or moderate income census tract, or the income of all applicants on the loan must be less than 80% of the FFIEC Median Family Income. Total maximum assistance, including all lender credits and pricing assistance cannot exceed $2,500. A lender credit of $500 will be applied at closing. Additional assistance is applied via a price adjustment and varies by loan size. For Purchase transactions, lender credits cannot be used to offset fees or charges already being paid by the property seller in accordance with the sales contract. All loans subject to program eligibility, collateral and underwriting requirements and approvals, including credit approval. Down payment requirements vary by county and VA guidelines.