Why Can’t A Local Redding Bank Do This?
HOME LOANS, INDUSTRY NEWS, TIPS FOR BUYERS
April 4th, 2009
Banner Bank in Portland Oregon has used a portion of $124 million in bailout money to offer 30-year fixed rate mortgages on new homes at 3.875%. Why can’t some of our community banks that received federal funds do the same?
When new homes sell, buyers essentially put a whole stream of people to work. Realtors, banks, construction workers, appliance suppliers, title and escrow workers, home inspectors, furniture stores, building supply businesses, etc. all get to work. In turn, the money circulates over and over in the economy as employed workers buy products and services.
Click here to watch the Early Show segment on the Banner Bank program:
http://www.cbsnews.com/video/watch/?id=4887922n
Unfortunately, many banks that have received huge sums of taxpayer’s money are simply sitting on the sidelines hording the funds. The effect in Portland has been a dramatic spike in new home sales. Banner Bank has expanded the program to other areas it serves in the Northwest. Builders and developers who until recently blamed the banks for recklessly lending money to unworthy borrowers now praise banks for helping kick-start the local economy.
Buyers that were on the fence have been motivated to jump into a new home and become homeowners instead of renters. Experts claim the combination of low home prices and low mortgage rates have increased affordability to levels never seen since Freddie Mac developed housing indices in 1971. I believe local banks that team up with home builders can create a rare opportunity for buyers to secure a long term loan that makes the American Dream attainable. A win-win for buyers, builders and many others with ties to the housing industry.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
