SANTA ROSA, Calif., April 6, 2017 /PRNewswire/-- Luther Burbank Savings, one of the largest privately held financial institutions in California with over $5.1 billion in assets, has pledged to loan $50 million to first time homebuyers. Their popular "Daisy" product, which the bank reintroduced in 2016, offers down payment assistance to first time homebuyers. "Grow," which is complemented by "Daisy," is a community lending program designed to make California homeownership more viable, especially to those who cannot afford the typical down payment.
The Luther Burbank Savings "Grow" program is designed as a conventional community lending mortgage that delivers a fixed rate 30-year loan, with a down payment option of as little as 3 percent.
The Bank's "Daisy" program is a second trust deed loan that helps first time homebuyers in financing the required 3 percent down payment necessary to qualify for a "Grow" loan. "Daisy" provides borrowers with 2 percent of their purchase price to be used as part of the down payment, and an extra 1 percent of their loan amount to assist in covering closing costs.
"We offer 'Daisy' financing at a zero percent interest rate, and the loan may be forgiven after three years," says Jason Pendergist, President — Consumer & Commercial Banking for Luther Burbank Savings. Borrowers must maintain residence and remain current on "Grow" payments. "Further, our 'Grow' program offers a 3 percent down payment with no mortgage insurance, which is nearly unheard of in our industry," says Pendergist.
"Luther Burbank's 'Grow' program eliminates mortgage insurance for the borrower, thereby decreasing monthly payments and bringing homeownership within reach to a broader group of responsible borrowers," he continues.
In order to ensure that consumers were aware of these programs, Luther Burbank Savings began aggressive marketing campaigns in early 2016 that greatly increased "Grow" and "Daisy" borrowing, according to John Biggs, President and Chief Executive Officer of Luther Burbank Savings.
Luther Burbank Savings originated an aggregate total of $22.5 million through 159 separate "Grow" and "Daisy" transactions in 2016. 2017 production is on pace to exceed that mark with $5.8 million in transactions either already funded or in the pipeline through the first quarter.
"We are well on our way to meeting our $50 million goal just 15 months into the program," says Biggs. He adds, "there is tremendous demand for these types of programs, and as a leading community bank, we recognize the responsibility we have to bring these options to the communities we serve."
To find details regarding the "Grow" and "Daisy" programs, visit the Luther Burbank Savings website at https://www.lutherburbanksavings.com/about-us/community/.
About Luther Burbank Savings
Founded in 1983 in Santa Rosa, California, Luther Burbank Savings is an FDIC insured, privately held, California-based commercial bank with over $5.1 billion in assets. Luther Burbank Savings offers a variety of consumer and wholesale banking services focusing on single family, multifamily and commercial mortgage loan originations and retail deposits. Additional information is available at www.lutherburbanksavings.com. Luther Burbank Savings, an Equal Housing Lender, is headquartered in Santa Rosa, California.
SOURCE Luther Burbank Savings