CBC Mortgage Agency (CBCMA), a federally chartered housing finance agency, is reducing its interest rate on repayable second mortgages used for its down payment assistance (DPA) program. For underserved and first-time homebuyers, the rate reduction will minimize the dual impact of significantly higher first mortgage interest rates and increased home prices to help create more homeownership opportunities.
The rate reduction aligns with the company’s mission to support families on their journey to homeownership. Lowering the cost of owning a home, especially on financing costs, can make a substantial difference for many borrowers, especially those in low-to-moderate income communities.
“We looked hard and long at how we could help solve the affordability problem in housing, which is locking many would-be homebuyers out of the market,” said CBCMA President Miki Adams. “Among the measures within our control is the note rate on our portfolio seconds. By meaningfully reducing our rate, more borrowers stand a better chance at qualifying.”
This initiative underscores CBCMA’s ongoing commitment as the leader in national down payment assistance programs that help homebuyers of all backgrounds become homeowners. Over the past decade, the company has assisted thousands of homebuyers, including many first-time and minority borrowers. The company recently received approval to begin offering USDA loans, providing another powerful resource that is empowering low-to-moderate income buyers in rural areas to live the American Dream.
CBCMA plays a crucial role in the housing market by establishing consistent guidelines that may be offered across the country (except NY), making it easier for lenders to implement their program across all lending platforms, which benefits the borrower in the long run. Down payment assistance is essential for many families, and CBCMA’s programs, including its forgivable down payment assistance program, offer an alternative to those who do not have access to other forms of assistance, such as gifts from relatives.
“Homebuyers who are borderline eligible may find that even a small cut in their monthly housing payments is enough to shift from being renters to owners, opening the door to wealth accumulation through home equity,” said CBCMA’s Chief Operating Officer, Steve Stein.
Ultimately, the company hopes to facilitate more homeownership opportunities nationwide by lowering the interest rate on second mortgages.
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