The Montgomery Bank New Start affordable housing program has been created to provide the community with a program to address the needs for home financing in certain low-to-moderate income areas and for low-to-moderate income borrowers.
The intent is to help meet the more demanding standards of performance under the Community Reinvestment Act (CRA) by offering a mortgage product with obtainable, yet reasonable, standards which can be held in Montgomery Bank’s portfolio.
Montgomery Bank is committed to facilitating ownership for individuals in all segments of our community who have the ability to repay, while maintaining safe and sound banking practices and our commitment to our shareholders. The program offers more moderate terms than traditional home financing methods, particularly with regard to loan-to-value and borrower qualifications. We have found that these underwriting standards work if complimented by Homebuyer Education, which is required for all purchase transactions under the New Start program.
Most borrowers that use this program should also be able to take advantage of down payment assistance and other subsidy programs available through local government agencies or non-profit organizations.
The New Start program is also available to borrowers looking to refinance. The program does not allow for cash-out but can be utilized by borrowers looking to convert an adjustable interest rate to a 30-year fixed rate. We are proud of the success we’ve seen from the New Start program. Specifically, two results stand out: the mortgages we’ve made under this program have performed well and the program has helped stabilize low-to-moderate income geographical areas within our Assessment Area.
We expect these results to continue and are committed to this program for the foreseeable future. Please inquire today by calling our mortgage originators at 314-957-4044.
