CBC Mortgage Agency introduced temporary rate buydowns to its down payment assistance program for FHA first mortgage financing, the lender announced in a press release.
Borrowers have access to either a 2-1 or 1-0 buydown, easing the financial burden on first-time buyers for the first few years of homeownership.
“The addition of a 2-1 and a 1-0 buydown feature is CBC Mortgage Agency’s continued response to the ongoing effect of the higher interest rates,” said Cari Zwick, National Program Director. “We’ve had a lot of requests for a buydown feature, and we hope it provides some relief to buyers during the current state of the housing market.”
This feature comes just weeks after CBC lowered the interest rate on its down payment assistance program to assist struggling low-to-moderate-income buyers in the high-rate, high-home price environment. Those changes specifically apply to repayable second mortgages.
“Homebuyers who are borderline eligible may find that even a small cut in their monthly housing payments is enough to shift from being renters to owners, opening the door to wealth accumulation through home equity,” CBCMA’s Chief Operating Officer, Steve Stein, said.
CBC Mortgage Agency is a Native American housing finance agency and a leading source of down payment assistance for low-to-moderate-income borrowers. It is a wholly owned subsidiary of Cedar Band Corp., a federally chartered tribal corporation founded by the Cedar Band of Paiute Indians.
This year CBC celebrated its 10-year anniversary with a rebrand of its down payment assistance program, The Chenoa Fund, and a slew of new executive hires.
The Chenoa Fund has assisted more than 42,000 families with down payments since May 2013 and operates in 49 states and territories. Roughly 75% of the homebuyers who receive down-payment assistance from CBC Mortgage are first-time homebuyers, and about half are minorities.