Ohio CU in Pilot Involving Foreclosed Homes

The Dayton City Commission of Ohio recently approved a pilot program through which the Citywide Development Corp. and Wright-Patt Credit Union will leverage $2.1 million of federal grants obtained under last year's federal stimulus bill to provide low-cost funding for the redevelopment of foreclosed homes and abandoned properties.

The program is expected to assist as many as 100 home buyers. The loans will be 14% guaranteed by the city and will finance downpayments for the purchase of vacant or foreclosed homes. It also will provide funding for basic repairs on such things as the roof or windows.

"It's going to take a little bit to climb back out and stabilize our market, but we think with programs such as this, we can take some pretty great strides forward," said Aaron Sorrell, Dayton's neighborhood development manager.

At this time, the Wright-Patt CU is the only lender involved, but others may be added in the future.