SHOP-CAPITAL Program Resource Toolkit
Homeownership could be in your future!
Freddie Mac, HSBC Mortgage Corporation (USA), HSBC Bank USA, National Association and the Affordable Housing Partnership are pleased to be collaborating on a $25 million comprehensive homeownership initiative called SHOP-CAPITAL in an effort to help hundreds of local households become homeowners in the cities of Albany, Schenectady and Troy.
Responding to the needs of the Capital District's urban communities, SHOP-CAPITAL combines comprehensive consumer outreach and education by the Affordable Housing Partnership with flexible mortgage financing options through HSBC Mortgage Corporation (USA) and Freddie Mac. The full range of initiatives available through SHOP-CAPITAL are designed to help residents clear many of the most common hurdles to homeownership, including a lack of information about personal financial management or the homebuying process, and limited downpayment savings.
This program comes at a time when unfair or "predatory" lending practices are being reported on a regular basis nationally as well as in the Capital District. Misleading loan terms, excessive fees and loan "flipping" are just some of the practices that potential, new or misinformed homebuyers can be subjected to. With consumer education a major element of this lending alliance, the SHOP-CAPITAL program includes consumer counseling that helps borrowers avoid predatory practices by providing information on all their financing options.
Program Highlights
- For the cash-strapped borrower, HSBC is providing up to $3500 towards their closing costs in conjunction with a Freddie Mac Community Gold Mortgage. And, a downpayment of only $500 is required from the borrowers own funds.
- Or, for the payment-sensitive borrower, HSBC is offering its CommunityWorks loan program. This flexible product comes with a discounted interest rate - .75% interest rate discount off the current market interest rate.
- For borrowers with less than perfect credit, Freddie Mac's Affordable Merit Rate Mortgage is available. After 24 on-time mortgage payments have been received, the customer is eligible for a 1% interest rate deduction.
- HSBC's innovative Home Renewal program is available with more relaxed credit standards. Home Renewal allows a borrower to purchase and rehabilitate a home all with one loan.
- For borrowers not yet ready to buy a home, HSBC Bank USA's First Home Club matched savings program can help. For every dollar saved over a pre-determined period of time, the First Home Club enrollee will receive $4 in matching grant funds up to $7,500 from the Federal Home Loan Bank towards the purchase of a new home.
- Or, to prepare a borrower for the responsibilities of owning their own home in Albany, Schenectady or Troy, applicants can attend one of Affordable Housing Partnership's informative educational programs ranging from pre-purchase homeownership counseling to credit repair workshops to landlord education.
Requirements
- Except for the First Home Club program, the borrower does NOT need to be a first-time homebuyer.
- The borrowers qualifying annual income must be at 80% or less of the HUD Median Income limit or must purchase in qualified census tracts.
For more information on SHOP-CAPITAL, contact Affordable Housing Partnership at
