The first bank to partner with Los Angeles by granting direct down payment assistance for lower income first-time homebuyers provides a second $400,000
PASADENA, Calif., Jan. 23, 2019 /PRNewswire/ -- CIT Bank, N.A., the banking subsidiary of CIT Group Inc., today announced it has awarded a $400,000 grant to the Los Angeles Housing + Community Investment Department (HCIDLA) to help lower-income Angelinos achieve the American Dream.
In late 2017, CIT Bank provided $400,000, which enabled HCIDLA to assist 28 hard-working families in purchasing single-family homes and condominiums throughout the city. For this purpose, CIT is now renewing that grant for another year.
For over 25 years, HCIDLA has operated first-time homebuyer assistance programs, providing eligible first-time homebuyers with purchase assistance in the form of a deferred-payment "soft second" loan to be used toward down payment, acquisition and closing costs. Personal income tax credits in the form of mortgage credit certificates (MCCs) are also available to first-time buyers.
"CIT is pleased to partner with the City of L.A. and renew our support for low- and moderate- income families in their efforts to buy their first home," said Steve Solk, president of Consumer Banking for CIT. "Together, we are committed to strengthening neighborhoods and enhancing the lives of local L.A. residents."
With rising home prices and interest rates, the path to homeownership has become increasingly difficult, especially for low- and moderate-income first-time homebuyers. HCIDLA's resources for first-time homebuyers are primarily federal grants and MCCs via the California Debt Limit Allocation Committee (CDLAC). With these limited resources HCIDLA can typically assist fewer than 100 home buying low-income households a year and thus continuously seeks other grant sources. This second $400,000 grant from CIT will enable HCIDLA to provide loans to an additional 28 homebuyers.
Denise Harris, a new homeowner, received an HCIDLA Low Income Purchase Assistance (LIPA) loan of $60,000, including $15,000 from the CIT grant awarded in late 2017. Ms. Harris stated, "I am grateful for the program. I am a single mother of three and obtained a brand new home through the wonderful LIPA Program and Habitat for Humanity. This has been a blessing to my family. Thank you!"
Another new homeowner assisted by the CIT grant, Nelson Armando Flores, shared that "The LIPA Program made my dream of owning a home come true. I had been thinking of purchasing a home for over eight years but with home prices so high, it seemed like just a dream. Thanks to this wonderful program, my wife, three sons and myself, now own our own home. Thank you for this great opportunity. Hopefully, this program never ends."
HCIDLA General Manager Rushmore Cervantes stated that, "HCIDLA is pleased to accept this new CIT grant which will support our loan programs for low-income, first-time homebuyers. The demand for assistance by highly qualified buyers is far greater than the limited resources available for this purpose."
To learn more about HCIDLA's First-Time Homebuyer Programs, please visit hcidla.lacity.org/homebuyers.
CIT is a leading national bank focused on empowering businesses and personal savers with the financial agility to navigate their goals. CIT Group Inc. (CIT) is a financial holding company with over a century of experience, approximately $50 billion in assets as of Sept. 30, 2018, and operates a principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender). The company's commercial banking segment includes commercial financing, real estate financing, equipment financing, factoring and railcar financing. CIT's consumer banking segment includes its national online bank, CIT Bank, and a Southern California branch bank, OneWest Bank. Discover more at cit.com/about.
Los Angeles Housing + Community Investment Department (HCIDLA) promotes livable and prosperous communities through the development and preservation of decent, safe, and affordable housing, neighborhood investment and social services. For more information, contact HCIDLA Monday through Friday, at (213) 808-8808, or toll-free at (866) 557-7368. More information about HCIDLA programs and services can be found on the HCIDLA website at hcidla.lacity.org.
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