CHICAGO – Southside Community FCU said last week it has expanded its partnership with Marquette Bank to offer low-downpayment mortgages to low- and moderate-income households. In an unusual arrangement, the community development credit union will offer second mortgages on first mortgages already provided by the bank, enabling the borrower to avoid private mortgage insurance. The arrangement will save borrowers as much as $200 a month. Under the arrangement, the first mortgage offered by Marquette Bank up to 80% of loan-to-value is combined with the second mortgage offered by Southside Community FCU for the difference between the down payment and the first mortgage. This enables the burrower to avoid PMI.
Processing Content
