Fresh-Start Home Finance Program
The Fresh-Start Home Finance Program offers members "at-cost" advances to provide foreclosure prevention assistance for low- to moderate-income households who cannot afford the terms of their existing mortgages.
Fresh-Start Home Finance is provided 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" Committment:
Under the umbrella of it’s Community Lending Programs, the
HLB is committed to providing $300 million in Fresh-Start
Home Finance funds to help qualified homeowners at or
below 115% of the area median income who are facing
unaffordable or soon-to-be unaffordable mortgage payments.
Through this program, the HLB encourages members 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 Home Financing:
Fresh-Start Home Finance 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 me
- 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 Home Finance Funds:
Homeowners that meet any of the following conditions are eligible for Fresh-Start Home Financing through an HLB member institution:
- A mortgage interest rate that is at an unaffordable level;
- An interest only or adjustable rate mortgages 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 their affordability means
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
Advatages 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