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Loan Products
LA NHS is a Community Development Financial Institution (CDFI) that offers services that assist first-time homebuyers with down payment and closing cost assistance, as well as flexible qualification requirements. For existing homeowners of modest means, we provide refinancing, home improvement grants, and affordable loans based upon the borrower's ability to repay.

LA NHS works closely with local government, financial institutions, insurance companies, individual investors, foundations, NHSA, Fannie Mae and Freddie Mac to provide affordable, flexible financial products and services which will protect and serve our clients from long term default risk. Through our community lending products and services, LA NHS has been able to provide local financial institutions with Community Reinvestment Act opportunities, as well as to increase the awareness of the financial services community regarding community credit needs. Through our Full Cycle Lending system, LA NHS has experienced no foreclosures in the 20 year history of our Revolving Loan Fund Portfolio, and maintains a less than 3% delinquency rate on the portfolio.

 

"Full Cycle Lending"
Full Cycle Lending is a system of borrowing as well as of lending. We offer a friendly approach that meets the needs of families of modest means and helps overcome the obstacles clients may face in achieving the dream of homeownership. It is a system that enables lenders, businesses, government agencies and LA NHS to work together to provide homeownership opportunities to families who may not qualify for conventional mortgages.


California Dept of Real Estate Broker License #01215951

1. LA NHS Partnership-Building
LA NHS makes a commitment to the process by creating a partnership of residents, business and local government leaders. A plan for targeted community revitalization is put in place.

2. Prepurchase Homebuyer Education
The homebuyer learns about the purchase process with a supportive organization that helps them clear up credit problems, find a home they want to buy, and coordinate the rehabilitation needs of the property.

3. Flexible Loan Products
Local lenders work with LA NHS to create mortgage products the customer can afford -- with features like lower down payments and rehabilitation loans even when the total cost exceeds the value of the home.

Property casualty insurance and mortgage insurance companies provide products that allow for the high loan-to-value ratios. The lender can hold the loans in portfolio or package and sell them to Freddie Mac or Fannie Mae's secondary markets. Neighborhood Housing Services of America purchases special-needs first mortgages as well as second- and third-mortgage rehabilitation loans. The secondary markets return funds to the lender, who recycles them by originating additional mortgages to the community.

4. Property Services
LA NHS inspects the property, offers technical assistance to the homebuyer and assists with the property's rehabilitation.

5. Postpurchase Counseling
LA NHS trains the new owners in home maintenance and budgeting, and supplies early intervention delinquency counseling so that defaults and foreclosures are avoided.

6. Neighborhood impact
Homeowners gain a stake in their communities; lenders reach a significant market in which risk has been mitigated; the tax base increases; and the nonprofit partnership is one step closer to achieving its goal of neighborhood self-sufficiency. Everyone benefits.

Program Highlight:
LA NHS has begun development on a 30 unit
housing development in North Hills. For more
info on the progress of the construction and for
updates on availablity of the units, click here.