The former Union Bank branch at Shaw and Marks avenues is now U.S. Bank. Photo by Frank Lopez

Fresno is one of 11 test markets for a new home down payment assistance program launched by a national bank expanding to the West Coast.

Fresh off its $8 billion purchase of Japanese-owned Union Bank, Minneapolis-based U.S. Bancorp has launched its Access Home Loan program, which provides up to $12,500 in down payment assistance and up to $5,000 in lender credit. The goal of the program is to address historical obstacles that communities of color face in the homeownership process, according to a U.S. Bank news release.

In addition to Fresno, the program is initially available in Las Vegas, Nevada; Little Rock, Arkansas; Milwaukee, Wisconsin; St. Louis, Missouri and California cities Sacramento, Los Angeles, Oakland, San Diego and Riverside/San Bernardino.

The program aligns with U.S. Bank’s Access Home initiative launched in May 2022 to advance Black homeownership.

“We know that homeownership is the No. 1 way to build long-term wealth, but far too many minority families and individuals simply can’t come up with the upfront costs to buy a home,” said Lenny McNeill, who leads strategic markets and affordable lending for U.S. Bank. “There was a need that needed to be met. Our Access Home initiative and, now the U.S. Bank Access Home Loan, provide the level of financial support that can make sustainable homeownership a reality for underserved populations.”

In addition to down payment assistance and lender credit, buyers using the new Access Home Loan have the option to use lender credit to buy down their interest rate, a way for borrowers to obtain a lower interest rate at closing. 

While the Access Home Loan is primarily designed to support first-time homebuyers, borrowers do not need to be a first-time buyer to qualify, according to the release.

Borrowers can combine the benefit with other down payment assistance grants and programs, but must contribute a minimum of $1,000 from their own funds. To qualify, borrowers must currently reside in a “majority/minority” location as determine by census tract, must have income equal to or below the Housing and Urban Development Area Median Income in the area they want to buy.

If the borrower income is above the median income, subject property must be located in a low-to-moderate income census tract

In most cases, a FICO Score of at least 640 is needed. Alternative credit data like monthly rent, utility payments, income and employment information may be used.

U.S. Bank entered the Fresno market and West Coast in a big way this spring with the acquisition of Union Bank, the fourth-largest financial institution in the region with nearly 6% market share, 12 local branches and $1.9 billion in deposits, according to the Federal Deposit Insurance Corp.