Luther Burbank Savings Launches New Loan Programs to Make Homeownership and Home Improvement More Accessible in California
SANTA ROSA, Calif. (November 2, 2015) – Luther Burbank Savings, one of the largest privately held financial institutions in California with over $4 billion in assets, has announced the launch of three new community lending programs that will make homeownership and home improvement loans more accessible for borrowers throughout California, according to Jason Pendergist, Executive Vice President and Chief Lending Officer of Luther Burbank Savings.
The new programs, entitled “Grow,” “G2” and “Bloom,” offer home purchase and refinance options, as well as home improvement loans at extremely competitive rates and terms.
“As a leading community bank, we recognize the responsibility we have to bring accessible loan options to qualified borrowers in the areas where our branch offices are located,” noted Pendergist.
The new Luther Burbank Savings “Grow” program is designed as a conventional community lending mortgage that delivers a low fixed-rate 30-year loan, with a down payment as little as three percent.
“The fact is, many people have steady, reliable income and can afford to make a monthly home loan payment. The challenge is, given extremely high real estate prices, borrowers simply do not have the upfront cash to cover a 20 percent down payment normally required,” Pendergist explains. “Given this dichotomy, our Grow program can be implemented to assist qualified homebuyers.”
He continues, “Most other lending programs offering a down payment of less than 20 percent require mortgage insurance, which can increase monthly payments by hundreds of dollars. Our new Grow program eliminates mortgage insurance for the borrower, thereby decreasing monthly payments and bringing homeownership within reach to a broader group of responsible borrowers.”
Luther Burbank Savings can also assist first time homebuyers in financing the required three percent down payment. The bank is offering a second-trust-deed option called “G2” that will provide borrowers with two percent of their purchase price to be used as part of the down payment, in addition to an extra one percent of their loan amount to assist in covering hard closing costs. The G2 financing is offered at a fixed interest rate of two percent over a 15-year term.
“This is one of the most innovative lending products in the market right now, and we believe that our borrowers will be able to build a sense of permanency within the community and really benefit from the opportunity to purchase or refinance a home with the Grow program,” says Pendergist.
Luther Burbank Savings is upholding its 30-plus year history of conservative banking practices with these new programs. The bank will ensure that all borrowers are fully qualified, and complete pre-purchase homebuyer education and counseling.
“Educated borrowers are empowered borrowers,” Pendergist notes. “We recognize the impact that homebuyer education can have on the life of our borrowers, and on the health of the overall economy.”
The Grow program offers home purchase and refinance loans for owner occupied properties from $20,000 to $417,000 for single family residences/condos and up to $533,850 for two unit properties.
The new Luther Burbank Savings “Bloom” program is a closed ended fixed rate home improvement loan that will allow borrowers to obtain funds for home renovation projects without the complexity of verifying proposed home improvement plans.
“Home improvement loans are extremely difficult to find, and most require time consuming ‘red tape,’ such as architectural plans, contractor estimates, and more,” explains Pendergist. “With this program, our qualified borrowers will be able to make home improvements as they see fit. From replacing doors and windows to installing a new roof, projects can be completed at the discretion of the homeowner.”
The Bloom program offers loans from $10,000 to $30,000 at a fixed rate of four percent interest for 15 years. This financing is available for owner-occupied single family residences or condominiums.
To qualify for either the “Grow” or “Bloom” program from Luther Burbank Savings, borrowers must meet specific criteria, including:
- Borrowers must own and occupy the property as their primary residence.
- “Grow” and “Bloom” loans are available for properties in the following California counties: Alameda, Contra Costa, Los Angeles, Marin, Orange, San Francisco, San Mateo, Santa Clara, Sonoma.
- For borrowers financing properties that are not located in a low-or moderate-income census tract (as designated by FFIEC.gov website), total applicant income of all borrowers is limited to a maximum of 160 percent of the area median income.
- Borrowers financing properties that are located in a low-or moderate-income census tract (as designated by FFIEC.gov website) are not subject to income restrictions.
For more information on the Grow, G2 and Bloom programs by Luther Burbank Savings, visit their website at http://www.lutherburbanksavings.com/programs/grow-bloom/index.html or contact the bank at 855-903-2479.
Founded in 1983 in Santa Rosa, California, Luther Burbank Savings is an FDIC insured, privately held, California based savings association with over $4 billion in assets. Luther Burbank Savings offers a variety of consumer and wholesale banking services focusing on single family, multifamily and commercial mortgage loan origination and retail deposits. Additional information is available at www.lutherburbanksavings.com. Luther Burbank Savings, an Equal Housing Lender, is headquartered in Santa Rosa, California.
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