November 1, 2021 by Premium Mortgage Corporation
In March of 2021, we launched the Neighborhood Vitality program to help cultivate homeownership in majority minority target areas across the state. If a borrower purchases a home in one of these targeted locations, we provide a $2,000 credit to be used towards closing costs and/or prepaids, subject to loan program parameters. Homeownership matters to our communities, and as a mortgage lender, we wanted to do our part in creating a foundation for families and empowering those looking to put down or keep roots in their neighborhoods.
Since its inception in 2021, the program’s success has been significant. As compared to the loans closed in these targeted areas between January and September of 2020, Premium Mortgage Corporation has seen nearly a 42% increase year-over-year in units closed and a 56% increase in originated funds closed between that same timeframe in 2021. We believe this growth has shown just how valuable owning a home is, particularly to our neighbors in historically underserved communities.
Initially, the Neighborhood Vitality program was established with a special financing fund of $500,000, for which the $2,000 credit would be pulled from. Now, we are poised to surpass this goal and will be funding additional grants up to $2 million. A commitment Mike Donoghue, Premium Mortgage Corporation’s President, believes is crucial. “We did not just want to throw money at the problem – that is easy – anyone can do that. We wanted to find a way to get the money into the hands of those that need it and can use it to enrich their neighborhoods.”
The available closing cost credit continues to be socialized by Premium Mortgage Corporation to consumers and professionals in the real estate community, as we identify properties in eligible underserved areas. “I am proud to work with a group of people who are both innovative and community centric,” said Donoghue. “We are utilizing the latest technologies to benefit our communities and address problems whose roots date back to their very beginnings.”
We continue to connect with various community-focused organizations and offering educational opportunities on the Neighborhood Vitality program. With the establishment of the program, we hope to be an example for other banks and mortgage lenders, illustrating the importance of achieving homeownership for families in the communities they serve.
To learn more about the areas eligible for the $2,000 closing cost credit, please visit this link:
