Nonprofit Eases Pain of Home Financing

Prospective Ventura County home buyers in search of affordable financing can take advantage of a pilot program being launched today by Cabrillo Economic Development Corp.

Using a $1-million line of credit from State Farm Bank, Cabrillo’s lending arm, Ventura County Community Development Corp., will make second mortgages available to qualified buyers.

The nonprofit group is also working with Neighborhood Housing Services of America, an Oakland-based purchaser of second mortgages.

“This way of funding second mortgages is really unique,” said Jill Bangser, Cabrillo’s special projects manager.

The program, called “A New Way Home,” will provide 15-year second mortgages of up to $60,000 at a fixed 5% interest rate, Bangser said. When combined with other government home buyer assistance programs, buyers can afford higher-priced homes and condominiums.

Unlike other affordability programs, applicants can earn as much as 140% of the area’s median income, meaning a single person can earn no more than about $70,000 or a family of four no more than $100,600.

Buyers have to contribute only 2% of a home’s purchase price, but a greater down payment would allow for a higher-priced home.

For more information or to make an appointment with a loan counselor, contact Cabrillo’s home ownership center at (805) 659-6868, Ext. 30.