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Community Developments Investments (February 2018)

Expanding Housing Opportunities: Single-Family Rehabilitation Financing Programs

A Look Inside

National banks and federal savings associations (collectively, banks) that offer single-family rehabilitation financing are critical partners in community-wide efforts to revitalize neighborhoods.

Emergency Programs Support Recovery Efforts by Community Financial Institutions

The OCC has issued guidance to spur community revitalization through prudent higher-loan-to-value mortgage lending in targeted areas.

Banks are important partners in community development efforts to revitalize and stabilize distressed communities, and can receive Community Reinvestment Act consideration by providing community development loans, investments, and services.

Detroit Home Mortgage: Innovative Rehabilitation Financing

In Detroit-a distressed city with low-value housing stock where the cost to purchase and renovate a property can exceed the market value-banks have joined together in launching an initiative to offer financing that addresses the "appraisal gap."

  • How Detroit Home Mortgage Supports Homeowners
  • Detroit Home Mortgage-A Home Buyer's Perspective
  • Detroit Mortgage Financing: Challenges and Solutions

FHA 203(k) Rehabilitation Mortgage Insurance Program

The Federal Housing Administration Section 203(k) program offers two levels of rehabilitation loans: one to finance the purchase or refinancing of a house and the cost of its rehabilitation through a single mortgage, and another to finance less extensive repairs or improvements to the borrower's existing home.

  • Sample Financing Costs Under the Standard 203(k) Program

Single-Family Historic Redevelopment Efforts in East Baltimore

TD Bank and several community-based organizations are working together on an initiative that combines a historic tax credit equity investment with funding from other partners to revitalize several contiguous historic neighborhoods in East Baltimore.

  • Overview of the East Baltimore Historic Redevelopment Project

Fannie Mae's HomeStyle Renovation Mortgage Program

Home buyers, investors, nonprofit organizations, and local government agencies can use the Fannie Mae HomeStyle Renovation loan product to finance up to half of a single-family property's "as completed" appraised value.

  • HomeStyle Renovation Lender Requirements

Purchase-Rehabilitation Programs Can Transform Communities

Community-based NeighborWorks America member organizations are engaged in a variety of efforts to stabilize communities through acquisition and rehabilitation of vacant, foreclosed, and distressed properties. By pairing responsible mortgage products with home buyer education programs, NeighborWorks affiliates in several cities are ensuring that their initiatives are providing lower-income home buyers with sustainable homeownership solutions.

Building the American Dream, One Homeowner at a Time

U.S. Bank's American Dream mortgage program extends purchase-money mortgages with low down payments, as well as a rehabilitation loan option. The bank offers home buyer education along with support to help low- and moderate-income home buyers manage the rehabilitation phase of their project.

  • U.S. Bank American Dream Mortgage Product

National Community Stabilization Trust-A Bridge for National Bank and Community-Based Partnerships

The National Community Stabilization Trust is working closely to build partnerships between banks, mortgage servicers, investors, and community-based organizations to combat blight in communities that have been hit hard by mortgage foreclosures.

  • Florida Minority Community Reinvestment Coalition

  • National Community Reinvestment Coalition Housing Rehabilitation Fund

  • Deputy Comptroller

  • Barry Wides

  • Editorial Staff

  • Letty Ann Shapiro

  • Dianne Davenport

  • Janet Fix

  • Design Staff

  • Victor Battista

On the Cover

Before-and-after image of a home in New Orleans rehabilitated by Redmellon Restoration & Development, a mission-driven real estate development company.

Questions or Comments

Call (202) 649-6420 or emailcommunityaffairs@occ.treas.gov. This and previous editions are available on the OCC's website atwww.occ.gov/communityaffairs.

Disclaimer

Articles by non-OCC authors represent the authors' own views and not necessarily the views of the OCC.