NCF - HELPING MODERATE AND LOW-INCOME FAMILES
The road leading to home ownership just got harder; according to new data from the Consumer Financial Protection Bureau, banks are moving away from lending to moderate and low-income borrowers – especially borrowers of color. This is most troubling for hard working families trying to achieve the American Dream; in 2017, low and moderate-income borrowers only made up 26.3% of the housing market - down from 36.6% in 2009. Because banks have nearly abandoned using mortgage loan products that favor working-class borrowers, buying a home is increasingly difficult, more expensive, or impossible for the nation’s working class. This is just one of many facts confirming the growing segment of society (low and moderate-income) being shut out of wealth building opportunities.
Other contributing factors include;
Despite all the gloom – NCF HAS GOOD NEWS!
- Unforeseen activities that negatively affect the borrower’s ability to repay debt.
- Tight mortgage lending requirements make it difficult for people who live in urban areas to get a home (4 out of 5 people live in an urban area in the USA).
- Creditworthiness – FICO credit scoring system
- 26 million Americans are “credit invisible”.
- 19 million Americans have no credit score.
- Borrowers to establish a line of credit (LOC) or debt instrument to get a credit score.
NCF’s COLA lending model DOES NOT use a credit score!
Yes, you read it correctly – with us, there’s no need to review credit history or track credit reports, all underwriting is based on two simple criteria’s;
- Debt to income ratio, and
- Income stability
If a potential borrower has stable income; and their debt-to-income ratio meet our guidelines, we can grant a loan – it’s just that simple!