ANTIGO, Wis. – CoVantage CU said this morning it has received a $1.5 million grant from the Community Development Financial Institutions Fund to help it finance a $10 million program aimed at refinancing mortgages for troubled homeowners.
The credit union said it will use the $1.5 million grant, along with $8.5 million approved by its board, to expand its Rescue Refinance Program which has the potential to benefit hundreds of troubled homeowners throughout the communities it serves.
CoVantage's Rescue Refinance program offers a mortgage loan that provides financing to families and individuals who have been unable to keep up with their mortgage payment. People in this situation typically have mortgage payments that are no longer affordable because of rate increases imposed by their current lender. Often, they are unable to refinance their loan using traditional methods because of declining property values.
Prior to the grant, the CoVantage Rescue Refinance program offered homeowners an opportunity to borrow up to 90% of the value of their property (without private mortgage insurance) on an adjustable rate mortgage with a fixed rate for the first 10 years. But for some, borrowing up to 90% was not enough, even though that is all regulated lending practices allow.
"With the CDFI funds, we can now make our Rescue Refinance program available to individuals who previously may not have qualified. This program has the potential to help hundreds of people who otherwise may not be able to keep their home," said Paul Grinde, executive vice president for the $860 million credit union.
CoVantage is one of 155 CDFIs and the only credit union in Wisconsin to receive the refi grant.
