Deal will fund nearly 300 mortgages for low-to-moderate income borrowers
TD Bank’s Commercial Lending Group in Connecticut has closed a $50m direct purchase bond facility to fund nearly 300 mortgages for low-to-moderate income borrowers purchasing their first homes, or borrowers who have not owned a home in the past three years.
"Owning a home is a huge accomplishment and it's a goal for many of our customers, but circumstances may make it difficult to get a conventional mortgage. By supporting this program, we are able to help these dreams become a reality," said Michael LaBella, Market President for TD Bank.
The bank said Tuesday that the bond facility was purchased for the Connecticut Housing Finance Authority (CHFA). The deal represents a portion of a $175 million hybrid direct bond purchase and liquidity facility, which the CHFA recently closed in partnership with another unnamed lender.
"In addition to helping homebuyers realize their American dream, CHFA's bonds provide an opportunity for investors, like TD Bank, to purchase highly rated AAA/Aaa bonds for their portfolios and to invest in their communities and state," said Hazim Taib, Chief Financial Officer at CHFA. "For first-time buyers, these mortgages are also affordable, with low interest rates and down payment assistances."
For over 45 years, the CHFA has sought to increase Connecticut's housing supply and assist in the purchase, development and construction of housing for low-to-moderate income individuals. Over 130,000 families and individuals have achieved homeownership through its efforts. The CHFA said it has also provided financing for the acquisition, construction, and/or rehabilitation of over 40,000 units of affordable rental housing.
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"Owning a home is a huge accomplishment and it's a goal for many of our customers, but circumstances may make it difficult to get a conventional mortgage. By supporting this program, we are able to help these dreams become a reality," said Michael LaBella, Market President for TD Bank.
The bank said Tuesday that the bond facility was purchased for the Connecticut Housing Finance Authority (CHFA). The deal represents a portion of a $175 million hybrid direct bond purchase and liquidity facility, which the CHFA recently closed in partnership with another unnamed lender.
"In addition to helping homebuyers realize their American dream, CHFA's bonds provide an opportunity for investors, like TD Bank, to purchase highly rated AAA/Aaa bonds for their portfolios and to invest in their communities and state," said Hazim Taib, Chief Financial Officer at CHFA. "For first-time buyers, these mortgages are also affordable, with low interest rates and down payment assistances."
For over 45 years, the CHFA has sought to increase Connecticut's housing supply and assist in the purchase, development and construction of housing for low-to-moderate income individuals. Over 130,000 families and individuals have achieved homeownership through its efforts. The CHFA said it has also provided financing for the acquisition, construction, and/or rehabilitation of over 40,000 units of affordable rental housing.
Related stories:
What influences borrowers’ decisions in taking out loans?
Millennials want to buy homes, value mortgage professionals
