St. Mary's Bank, Manchester, N.H., has pledged to make $2.5 million in new funds available for low-income Home Loan Payment Relief, or HLPR, mortgages, the subprime mortgage program developed by the Credit Union National Administration.
The HLPR program features a choice of adjustable rate mortgages with below-market interest rates, including a 3/1 ARM priced at one percent below the national average rate for the initial period and 5/1 and 7/1 ARMs priced one half of one percent below St. Mary's Bank's published standard rates for the initial term.
Rate caps of one percent per year and five percent for the life of loan help keep the monthly mortgage payments low.
Borrowers making 100% or less of the area's median income are eligible for the HLPR program, and there is a home buyer education requirement. Qualified properties include single family, owner occupied residential homes.
The below-market loans (pronounced ‘Helper’) were developed by CUNA and were popularized in 2008, but many credit unions have stopped making them since then.
For a limited time, qualified members of America's oldest credit union may also be eligible for a grant of up to $10,000 through the Federal Home Loan Bank's Equity Builder program. The grants can be used for downpayment assistance, customary closing costs and other items.
