Affordable Homeownership Ahead with CBC Mortgage Agency’s Rate Reduction on Second Mortgages
In South Jordan, Utah, as of November 14, 2023, CBC Mortgage Agency (CBCMA), a nationally recognized housing finance agency, has announced a significant reduction in interest rates on its repayable second mortgages, a key component of its Down Payment Assistance (DPA) program. This strategic move is aimed at easing the financial burden for underserved and first-time homebuyers, who are currently facing the dual challenge of soaring first mortgage interest rates and escalating home prices. This initiative is set to open more doors to homeownership, a core mission of CBCMA.
The decision to lower interest rates is a direct response to the growing affordability crisis in the housing market. By reducing financing costs, CBCMA is making homeownership more attainable for a broader range of borrowers, particularly those in low-to-moderate-income communities. “Our goal was to address the affordability issue head-on,” said Miki Adams, President of CBCMA. “By adjusting the note rate on our second mortgages, we’re giving more potential buyers a fighting chance to qualify for a home.”
CBCMA’s commitment to facilitating homeownership extends beyond traditional boundaries. Over the years, the agency has helped thousands of individuals, including many first-time and minority homebuyers, to achieve their dream of owning a home. The agency’s recent authorization to offer USDA loans further expands its reach, especially benefiting low-to-moderate income buyers in rural areas, enabling them to realize the American Dream of homeownership.
The agency’s role in the housing market is pivotal. By establishing uniform guidelines that can be applied nationwide (with the exception of New York), CBCMA simplifies the process for lenders to implement their programs on various lending platforms, ultimately benefiting the borrower. Down payment assistance is a critical need for many families, and CBCMA’s programs, such as the forgivable down payment assistance, provide a vital alternative for those without access to other forms of assistance.
Steve Stein, CBCMA’s Chief Operating Officer, emphasizes the impact of this rate reduction: “For many homebuyers on the edge of eligibility, a slight decrease in monthly housing costs can be the key factor that transitions them from renters to homeowners, thereby opening avenues for wealth building through home equity.”
CBCMA’s overarching aim is to enhance homeownership opportunities across the nation by making second mortgages more affordable.
About CBC Mortgage Agency: Established in 2013, CBC Mortgage Agency is a Federally chartered housing finance agency. As a prominent provider of down payment assistance, CBCMA assists low-to-moderate income consumers, often in minority communities, in achieving homeownership. A subsidiary of the Cedar Band Corp., a tribal corporation of the Cedar Band of Paiute Indians, CBCMA is recognized as a Top 25 Company in Mortgage & Servicing by MReport. For more information, visit chenoafund.org.
