WICHITA, Kan. - Boeing Wichita Credit Union is doing its part to make it possible for the underserved in Wichita to become homeowners. The $410 million credit union has added the City of Wichita's Home-Ownership 80 Program into its mix of home loans, and it recently made its first Home-Ownership 80 loan to member Micca Turner. The program grants funds to low-income qualified first-time home buyers to help with their down payment, closing costs and rehabilitation expenses for first-time home buyers in the city's designated Redevelopment Incentives Areas. The annual funding is made to the City through a federal grant from the HOME Investment Partnership Program. According to BWCU mortgage loan officer Darlene Hicks, the funding of the loans is on a case-by-case basis and is determined by several factors such as the applicant's income and the number of people in their household. In the case of the loan made to Turner, Hicks explained that she also had to meet credit criteria set by BWCU. The first-time homebuyer assistance consists of two zero-interest, deferred loans. The first one is secured as a zero-interest, deferred second mortgage on the home; assists the homeowner in meeting their down payment or closing cost obligations; and the maximum amount if $6,000. The second type of deferred loan is secured as a zero-interest, deferred third mortgage on the home; can only be used for repairs authorized by the City after closing on the home for a limited time; and the maximum amount of the loan is $5,000. This loan is also forgivable after five year provided the homeowner owned and occupied the home during the entire five-year period. The credit union funds 80% of the loan, and the City of Wichita the remaining 20%. Because it is the `silent second' on the loan, no private mortgage insurance is required. The term of the loan is 10 or 15 years, depending on the loan amount. The borrower can't refinance or sell the home without paying back the silent second. -
ebarr@cutimes.com
