Stringer Beefs Up Mortgages for Veteran Famiies

By JAMIE DELIZ

New York City Comptroller Scott Stringer on Thursday announced a new $450 million investment to help fund mortgages for affordable homes for veterans and single-parent families whose members died in the line of duty.

“It feels harder than ever to purchase a home,” said Stringer at a press conference in his office, “and that’s true for all of us. These challenges become tragedies for our veterans, our friends and neighbors who return from serving our countries overseas, to find themselves unable to afford a place to live.”

This initiative will create “tens of thousands” of sustainable and affordable homes citywide, according to Stringer, and, under the Department of Veterans Affairs, $5 million of this “first of its kind” investment will go directly towards the about 200,000 New York City veterans.

How this works is, “You go to the bank, and want to get this mortgage,” said Stringer, “we are backing up that mortgage.”

Through economically targeted investments, about 2 percent of the overall funds, the program works towards creating affordable housing for low to middle-income communities.  The program also links with private banks, like the RBC Bank, to provide funding for up to 30-year mortgages, encouraging both public and private lenders to create “more affordable housing mortgages and promoting lower interest rates,” according to the comptroller’s report.

Some $300 million was previously invested into the fund.

 “Again, we’re expanding our investment, we’re adding another $150 million,” said Stringer,  aiding single-families making less than the 80 percent area median income, about $77,000 a year.

Stringer aide Brian Cook said that half of the loans will be made for families who make less than $77,000, and “about half are made for, up to, about $140,000.”

Recipients are eligible for a maximum loan of a $600,000 loan. The loans are backed by a federal agency, according to Cook. Mortgages are at a fixed rate, and after it is backed and insured by an agency, Cook said, “We come in, and we purchase the mortgages.”

Photo by Jamie Deliz