Low and moderate income families still have another resource to tap through Meriwest Credit Union's mortgage subsidiary to buy homes at below the normal market rates.
The $1.2 billion CU in San Jose, Calif. said since 2008, Meriwest Mortgage has funded more than $18 million in first-time homebuyer loans for 75 families. Originated by the Bay Area Homebuyer Agency, the loans allow qualified families with income below the area median to purchase below market rate homes offered by local municipalities.
In addition to the funding, Meriwest Mortgage and BAHBA made it possible for these homebuyers to leverage nearly $5 million in down payment assistance programs. To date, there have been zero defaults or foreclosures on any of the funded properties, according to Meriwest CU.
"These first-time homebuyer loans and the down payment assistance programs allow qualified families who are earning far less than the median income to own an equity building asset. It is their chance to permanently stabilize their housing expenses and own a home that will benefit their families for many years to come." said Hudson Lee, president of Meriwest Mortgage and CFO of Meriwest CU.
BAHBA Administrative Manager Walter Zhovreboff said the homebuyer programs "are critical to breaking the cycle of poverty that exists in many communities."