Champions for Affordable Housing Column 5
MORTGAGE ACCELERATOR PROGRAM
We know our low- to moderate-income clients are well-equipped to afford a traditional 30-year mortgage after completing our program. Shorter loan terms may cause payment shock or exceed their debt-to- income ratio. INHP designed a fixed-rate Mortgage Accelerator program that would give clients the option of a 20-year term. By significantly reducing the interest rate, we can offer a shorter repayment term without the corresponding increase in their principle and interest payment. This will help clients save tens of thousands of dollars and build wealth.
The program was piloted in 2019 to serve interested buyers in partner initiatives like Anchor Housing and our three New Markets Tax Credit neighborhoods where we built 29 new homes. After a successful pilot, we were awarded a U.S. Department of Treasury grant to make our Mortgage Accelerator program available across Marion County in 2020. We’ll be able to offer eligible homebuyers a 20-year fixed-rate mortgage loan with a payment that is nearly identical to a 30-year mortgage.