Meriwest Mortgage Company LLC on Thursday said it has formed a partnership with the Housing Trust of Silicon Valley.
Meriwest Mortgage is a subsidiary of $1.3 billion Meriwest Credit Union, San Jose, Calif. The company said its new partnership will allow it to help low-income, first-time home buyers purchase a primary residence in Santa Clara County – one of the least affordable housing markets in the country. The program has income eligibility guidelines based on gross annual household income and other factors. Meriwest Mortgage said it will use HTSV’s low-interest second loan to assist with borrowers’ down payment and/or closing costs.
The loan program is called GAP and is funded by the State of California’s CalHome Program, Meriwest Mortgage explained. GAP is a deferred second loan with a maximum amount of $57,500 to help with a home purchase in Santa Clara County. GAP features a 30-year term with a low current interest rate of 3% and no monthly payments. Payment of the loan is deferred until the expiration of the term, sale of the home or refinance of the first mortgage.
“Meriwest is proud to continue to serve our community by offering this much-needed program,” Teri Saldivar, director of mortgage sales, said in a statement. “In this extremely tight housing market, first-time homebuyers struggle to compete for the small number of homes available in their price range. This new program can give them that extra advantage they need to become homeowners.”
