BBVA Compass helping low- and moderate-income borrowers overcome barriers to homeownership

- New HOME program helps qualifying borrowers meet down payment, closing costs

- It's part of bank's effort to support low- and moderate-income individuals, neighborhoods

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Feb 26, 2015, 11:06 ET

HOUSTON, Feb. 26, 2015 /PRNewswire/ -- BBVA Compass announced today the launch of its Home Ownership Made Easier, or HOME, program, which helps low- and moderate-income borrowers overcome one of the most significant barriers to homeownership — saving enough cash to cover down payment and closing costs.

BBVA Compass corporate logo

HOME allows qualifying borrowers to finance up to 100 percent of a home's value, with the bank contributing up to $4,500 toward certain closing costs. The program is part of BBVA Compass' recent pledge to put $11 billion in lending, investments and services toward supporting low- and moderate-income individuals and neighborhoods, and will also include a free online homebuyer education course to help prepare borrowers for the responsibility of managing a home loan.

"We've built a comprehensive program that will help many people across our footprint realize the dream of homeownership — something that may have seemed unattainable to them in the past," said Eduardo Castaneda, executive director of real estate lending for BBVA Compass. "The financing and closing cost assistance, and the essential homebuyer education, will help ensure they enjoy the benefits of their new home for years to come."

Castaneda also said that there are no private mortgage insurance, or PMI, requirements with a HOME mortgage, which he says can easily add $150 or more each month to the typical home loan payment.

"In some cases, clients participating in the bank's HOME program will pay a monthly mortgage payment that is less than what they currently pay as renters," he said. "And that's an important point: This program will be helping people who've already proven their ability to make that monthly payment."

Other benefits of the bank's HOME program:

Borrowers can move into a new residence with as little as $500 of their own funds. Seller funds and cash gifts can be used to pay remaining closing costs and so-called "prepaids" — expenses such as taxes and insurance that must be paid at closing before they are technically due.
The program offers flexible fixed-rate mortgage terms, with 30-, 25-, 20-, 15- and 10-year options available.
The HOME mortgage is also available to borrowers with higher incomes if they're financing properties in low- or moderate-income census tracts.

For more information about the BBVA Compass HOME mortgage program, click here.

All loans are subject to approval, including program eligibility, collateral and underwriting requirements, and approval, including credit approval. Contact a BBVA Compass Mortgage Expert for additional details and complete eligibility requirements.

To qualify for the HOME Program, certain eligibility requirements must be met. Those eligibility requirements include, but are not limited to 1) the property must either be located in a low-to-moderate income census tract (https://www.ffiec.gov/geocode/), or (2) the applicants on the loan cannot have an income greater than 80% of the HUD median income for the area. A lender credit not to exceed $4,500 will be applied at the time of closing, after final underwriting and product eligibility has been confirmed. The lender credit granted by the Bank cannot be used to pay fees that are already designated to be paid by the seller or other interested party in accordance with the sales contract and cannot be used to toward pre-paid items such as insurance premiums, taxes, other escrow set-up items, pre-paid interest or to pay discount points. The lender credit will be applied to items affecting the Annual Percentage Rate (APR) in first priority. Loans will follow normal loan processing procedures such as collecting appraisal and credit report fee during processing however the lender credit applied at closing may cover these fees as long as the $4,500 credit was not been exhausted on items affecting the APR. Examples of fees that may be paid by the Bank include origination fee, 4506-T fee, underwriting fee, processing fee, tax service fee, flood certification fee, appraisal fee, credit report fee, lender's title policy, county recording fees, pest, survey and others although never to exceed a total amount of $4,500. Consumer may receive cash back resulting from the lender credit only for items paid outside of closing (POC), for example, the appraisal and credit report fees. Discount points and pre-paid items can be paid by the seller or other third party up to the amount allowed by the product guidelines.

Compass Bank, member FDIC, and an Equal Housing Lender

About BBVA Group
BBVA Compass is a subsidiary of BBVA Compass Bancshares Inc., a wholly owned subsidiary of BBVA (NYSE: BBVA) (MAD: BBVA). BBVA is a customer-centric global financial services group founded in 1857. The Group has a solid position in Spain, is the largest financial institution in Mexico and has leading franchises in South America and the Sunbelt region of the United States. Its diversified business is geared toward high-growth markets and relies on technology as a key sustainable competitive advantage. Corporate responsibility is at the core of its business model. BBVA fosters financial education and inclusion, and supports scientific research and culture. It operates with the highest integrity, a long-term vision and applies the best practices. The Group is present in the main sustainability indexes. More information about the BBVA Group can be found at www.bbva.com.

About BBVA Compass
BBVA Compass is a Sunbelt-based financial institution that operates 672 branches, including 341 in Texas, 89 in Alabama, 77 in Arizona, 62 in California, 45 in Florida, 38 in Colorado and 20 in New Mexico, and commercial and private client offices throughout the U.S. BBVA Compass ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (5th). BBVA Compass earned the top ranking with customers in American Banker's 2014 annual reputation survey of the top 25 largest U.S. retail banks. It also has been recognized as one of the leading small business lenders by the Small Business Administration and in 2014 ranked 12th nationally in total SBA loan volume. Additional information about BBVA Compass can be found at www.bbvacompass.com, by following @BBVACompassNews on Twitter or visiting newsroom.bbvacompass.com.