CEDC, VCCDC launches a new way of opportunities for homeownership
Santa Paula News
Published: July 09, 2004
Homeownership rates among underserved and underrepresented groups in Ventura County will soon increase, thanks to a new $1 million loan initiative from the Ventura County Community Development Corporation (VCCDC), a nonprofit lendingaffiliate of the Cabrillo Economic Development Corporation (CEDC).
Homeownership rates among underserved and underrepresented groups in Ventura County will soon increase, thanks to a new $1 million loan initiative from the Ventura County Community Development Corporation (VCCDC), a nonprofit lendingaffiliate of the Cabrillo Economic Development Corporation (CEDC).
Appropriately named A New Way Home, the loan program will help make the dreams of homeownership a reality for families who are currently underserved by traditional lenders. Used alone or in combination with city homebuyer assistance programs, the program will bring homes within the affordability range for low- and moderate-income households through second mortgages, down payment assistance and closing cost assistance.
A variety of market-driven loan products will be offered on a case-by-case basis to address client needs. The loan products include amortized and deferred second mortgage loan products for low-income families, and amortized second mortgage products for moderate-income families. By obtaining a low-interest second mortgage, low- and moderate-income buyers will eliminate private mortgage insurance (PMI) and increase purchasing power.
Clients who receive loans through the A New Way Home initiative will be required to participate in financial education, pre-purchase homeownership education, one-on-one credit and financial counseling, and post-purchase education through the CEDC’s NeighborWorks(r) Home Ownership Center (HOC).
Eligible clients may also access first mortgage loan products through the HOC’s
secondary market partnership with Neighborhood Housing Services of America (NHSA).
Unlike the traditional lending market, NHSA has flexible underwriting guidelines that allow borrowers to receive low interest rates as long as they have satisfactory credit histories.
A New Way Home is possible thanks to a $1 million investment from State Farm Bank(r) to VCCDC, and through partnership with NHSA. State Farm Bank President Stan Ommen said of the program, “We make it our business to be a Good Neighbor by giving back to the communities we serve.” State Farm’s mission is to help people manage the risks of everyday life, recover from the unexpected and realize their dreams. “By supporting this program, we hope to instill the dreams of homeownership opportunities for families in Ventura County who might never have had the chance to make that dream come true.”
Other supporters of VCCDC include Citibank, the County of Ventura, Neighborhood
Reinvestment Corporation, Rural Community Assistance Corporation, Wells Fargo Bank, World Savings Bank, State of California, Department of Housing and Community Development, and the Federal Home Loan Bank, San Francisco.
To learn more about CEDC, call 805-659-3791 x10. For more information on A New Way Home, contact the HOC at 805/659-6868 ext. 30.
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