SACRAMENTO, Calif. – The $6.7-billion Golden 1 Credit Union has created a $20-million fund to help members in foreclosure due to a subprime loan to get back into their home.
Golden 1’s "Mortgage Repair Loan" offers a 30-year, fixed-rate mortgage to any member who lost his or her home to another lender within the past 18 months. The loans have a maximum value of $417,000, and the Golden 1 is estimating it will be able to help between 50 and 75 members.
To qualify, members must have a 20% down payment, agree to debt counseling, be able to demonstrate income with full documentation, and a credit score of at least 600. The loan is limited to owner-occupiers, and to those who had a subprime loan that was negatively amortizing, or ARM-borrowers who no longer could make payments after the loan repriced, and whose prepayment penalties prevented refinancing.
