Down Payment Funds Deploying Ahead of Schedule
Wednesday, April 04, 2018
GROW South Dakota has received $4.1 million in funding to support down payment assistance for families with low to moderate income. In April 2017, GROW SD received funding from Project Reinvest for 200 deferred loans at $10,500 each and was expected to deploy them within two years. In November, 2017, the Wells Fargo Neighborhood LIFT funding for 225 forgivable loans at $7,500 each was launched and also had a two-year deployment time. In both programs, the down payment assistance was paired with a first mortgage typically financed by a Grow SD approved lender.
As of late March 2018, GROW SD has allocated all 225 of the LIFT forgivable loans. In addition, more than 90% of the 200 Project Reinvest deferred loans have been reserved. GROW SD’s housing team will continue to deploy all of the 465 loans well ahead of the two-year expected deployment.
Obviously, the programs are popular with homebuyers. One customer told us, “I do want to say thank you to you and your colleagues for all of your assistance with the Neighborhood LIFT program. I was very scared a month ago as to how much work I would need to do on my end, but everything was very beneficial and has allowed me to understand more fully what the next chapter in my life is going to be looking like. You have all been so amazing to work with!”
Lenders like the programs too. One said, “Thanks in advance for your help! Just closed on my first loan with both programs and I can’t tell you how much I appreciate your help in making this happen for my borrower. She is a single mom with 3 kids and am so happy to be able to help her get into a home of her own!”
High praise also came from a local title company: “You guys are awesome! You are so very organized. Funds and closing documents are here on time. Documents are in order and easy to follow and explain to clients. I appreciate and enjoy working with you at GROW South Dakota!”
In describing the speed and efficiency of processing such a large number of loans, Lori Moen, GROW SD’s Chief Operating Officer, praised her “Truly amazing team! I am so proud of everyone on the front lines as well as those that have taken on so many extra duties to make the venture successful!”
Category: GROW SD