CBC Mortgage Agency President Richard Ferguson: National Down Payment Assistance Programs Offer Many Benefits for Large, Multi-State Lenders

CEDAR CITY, Utah, Dec. 16, 2019 /PRNewswire/ -- Down payment assistance (DPA) programs offered by cities and states make a home purchase possible for many consumers who can't get financial help from family members. But for national lenders, tracking and monitoring the requirements for each state or local program can be cumbersome.

That is where national programs, like those offered by CBC Mortgage Agency, a nationally chartered housing finance agency and a leading DPA source, can make the process far more efficient, according to CBC President Richard Ferguson.

"State and local DPA programs have made it possible for many minority homebuyers to achieve the American dream," Ferguson said. "However, a state-by-state approach is not realistic for large lenders who operate in multiple states. Programs like ours enable correspondent lenders to operate with one set of DPA guidelines so they can originate and close loans they are confident will be purchased."

Many prospective homebuyers, especially those in minority neighborhoods, lack the intergenerational family wealth resources available to their non-minority counterparts, so state and local DPA programs are essential for these people to become homeowners. However, the homebuyer must meet the program's requirements. For national mortgage lenders, keeping up with the rules of each local and state program can make it difficult, if not impractical, to accommodate applicants utilizing DPA without help from companies like CBC.

Some state programs offer forgivable DPA, for example, while others offer programs where the DPA must be repaid by the borrower. CBC offers both options, Ferguson said.

Another benefit from using national programs like CBC is that there are no restrictions on income, location or being a first-time homebuyer, he noted.

"In addition, DPA programs like the Chenoa fund often have better pricing and are easier to use," Ferguson added. "Plus, national programs create competition that breeds better programs, leading states to offer better pricing, terms and service."

About CBC Mortgage Agency
Founded in 2013, CBC Mortgage Agency is a nationally chartered housing finance agency. As a leading source of down payment assistance, the company helps low-income consumers, often in minority neighborhoods, achieve the dream of homeownership. CBC is a subsidiary of the Cedar Band Corp., a federally chartered tribal corporation founded by the Utah-based Cedar Band of Paiutes. More information can be found at chenoafund.org.

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SOURCE CBC Mortgage Agency