SPARTANBURG, S.C.–Carolina Foothills FCU is reporting it is seeing strong response to its Financial Inclusion Mortgage for First Time Homebuyers program, created to meet the financial needs of minority and low-income borrowers.
The mortgage has a 30-year term, 97% loan-to-value maximum, low closing costs, and has no private mortgage insurance requirement, the credit union said.
In addition, Carolina Foothills reported it also helps members find available down payment assistance by partnering with local non-profits that seek to make home ownership a reality for people of color. To make this mortgage more accessible, the credit union said it relaxed underwriting standards to accept non-traditional sources of credit, such as 12 months of satisfactory housing history, 2-12 months of paid utility payments, paid insurance premiums or other proof of timely payments.
The Key Element
“Financial education is a key element of the program. Prospective borrowers must complete six financial coaching sessions prior to obtaining the mortgage,” CFFCU stated. “The average loan amount is $160,593, with a third of members receiving down payment assistance grants through collaborative organizations at an average amount of $5,819.”
Carolina Foothills said it has made 74% of its outstanding loans to low-income borrowers, while stating other financial institutions have made only 25% of their loans to this demographic.
Carolina Foothills has approximately $165-million in assets and more than 17,000 members.
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