Fresh-Start Home Finance Program (Fresh-Start)
The Fresh-Start Home Finance Program (Fresh-Start) is offered to member community lenders to provide foreclosure prevention assistance for low- to moderate-income households who cannot afford the terms of their existing mortgages.
Fresh-Start funding is administered under the Community Investment Program (CIP). The CIP is designed to assist members with financing for homeownership and rental housing development activities that benefit individuals/families with incomes at or below 115% of the area median income.
The HLB's "Fresh-Start" Commitment:
The HLB is committed to providing $300 million in Fresh-Start funds to help qualified homeowners who are facing unaffordable or soon-to-be unaffordable mortgage payments. Through this program, member community lenders are encouraged to provide affordable mortgage refinancing to households that are experiencing mortgage payment stress and who may be at foreseeable risk of default.
Principles of Fresh-Start:
Fresh-Start funding is intended to ensure that households receive home financing with terms they can afford not only for today, but also into the future. The principles include:
- Consideration of the household’s ability to repay at the current rate and future resets
- Confirmation of the household’s income and assets through objective and verifiable means
- Availability of the most advantageous mortgage product and terms that provide for stable payment expectations and "no surprises" in future periods
Criteria for Fresh-Start Funds:
Homeowners that meet any of the following conditions are eligible for Fresh-Start funding through an HLB member.
- A mortgage interest rate that is at an unaffordable level
- An interest only or adjustable rate mortgage that has reset, or is due to reset, to a rate that is at an unaffordable level
- A mortgage with other non-traditional means that render the product unsuitable for the homeowner's affordability means
Note: The FHLBNY does not offer funding directly to homeowners, please contact one of our members to discuss funding options.
About the Funds:
- Features the lowest HLB advance rates available on a daily basis
- No-cost commitment — there are no fees associated with non-drawdown of funds
- Can be amortizing, bullet, or custom-structured
- Can apply for funds on a 90-day look-back basis
- Available until the $300 million commitment is met
- Advances must have terms of 1 year or greater
Advantages and Benefits:
- Provides qualifying households with sound home financing for the short and long run
- Ensures affordable terms for home financing
- Allows for efficient funding of multiple loans that have closed during the look-back period
- Ability to fully fund the principal amount of any mortgage loan that has been restructured, modified, or refinanced at terms that are suitable and affordable for qualifying households that run the risk of foreclosure