A California minority-owned bank has agreed to make more than $10 million in loans to low- and moderate-income homebuyers.
East West Bank said it will make loans of up to $175,000 to borrowers who can pay as little as 2% on a down payment. The new loan program has been dubbed "Advantage Dreams."
The $10 million sum is considered large for a bank of East West's size. East West, which has $1.6 billion of assets and is owned by an Indonesian businessman, operates 21 branches in the state.
East West made the loan commitment in cooperation with Consumer Credit Counseling Service of Los Angeles and Mortgage Guaranty Insurance Corp., Milwaukee.
The bank agreed to provide a $10,000 grant to Consumer Credit Counseling Service, a nonprofit community organization that tries to help people solve financial problems and excessive debt. East West is also helping to underwrite a series of workshops by Consumer Credit for homebuyers receiving a low-cost loan.
Mortgage Guaranty Insurance Corp. has agreed to underwrite and insure the loan program.