Luther Burbank Savings Targets First-Time Home Buyers With ‘Grow’ And ‘Daisy’

Posted by Patrick Barnard on April 11, 2017 No Comments
Categories : Residential Mortgage

California mortgage lender Luther Burbank Savings has pledged to loan $50 million to first-time homebuyers via its popular “Grow” mortgage product and “Daisy” down payment assistance product.

“Grow” is a fixed-rate 30-year conventional community mortgage with a down payment option of as little as 3%, the lender says in a release.

“Daisy” is down payment assistance program designed to make California homeownership more viable. More specifically, it is a second trust deed loan that allows borrowers to apply 2% of the purchase price to be used as part of the down payment, and an extra 1% of the loan amount to assist in covering closing costs.

“We offer ‘Daisy’ financing at a zero percent interest rate, and the loan may be forgiven after three years,” says Jason Pendergist, president, consumer and commercial banking for Luther Burbank Savings. “Borrowers must maintain residence and remain current on ‘Grow’ payments. Further, our ‘Grow’ program offers a three percent down payment with no mortgage insurance, which is nearly unheard of in our industry.”

Luther Burbank Savings is one of the largest privately held financial institutions in California with over $5.1 billion in assets. In 2016, it originated an aggregate total of $22.5 million through 159 separate “Grow” and “Daisy” transactions.

The lender reports that 2017 production is on pace to exceed that mark, with $5.8 million in transactions either already funded or in the pipeline through the first quarter.

“We are well on our way to meeting our $50 million goal just 15 months into the program,” says John Biggs, President and CEO of Luther Burbank Savings. “There is tremendous demand for these types of programs, and as a leading community bank, we recognize the responsibility we have to bring these options to the communities we serve.”

Register here to receive our Latest Headlines email newsletter




Leave a Comment