New mortgage program helps put home ownership in reach for low-to-moderate income families

MANCHESTER, NH – Through participation in a pilot program, the first credit union in the nation is now the first credit union to offer manufactured homebuyers access to traditional mortgage financing. St. Mary’s Bank announced today that it is one of two lenders making single-family mortgages available in New Hampshire resident owned communities as part of a nationwide New Hampshire Community Loan Fund initiative.

St. Mary’s Bank was invited by the Loan Fund to offer a special mortgage program as part of its national demonstration project aimed at making affordable financing available in manufactured home communities. Previously, manufactured homebuyers and homeowners had few options when it came to financing, and often had to resort to shorter term loans with higher interest rates.

“St. Mary’s Bank is committed to making home ownership more affordable for all New Hampshire families,” said Ronald J. Rioux, St. Mary’s Bank President and Chief Executive Officer. “By participating in the Loan Fund’s project, we’re helping to eliminate one of the biggest obstacles manufactured homebuyers face, which is finding affordable financing.” The availability of favorable credit terms not only serves to improve the affordability of homes in resident owned communities, but also to increase property values and improve salability, according to a 2006 study by the Carsey Institute at the University of New Hampshire.

“Both buyers and sellers of manufactured homes benefit from the financing now available through traditional channels like St. Mary’s Bank,” said Barbara Cunningham, St. Mary’s Bank Vice President of Residential Lending. “For one thing, it’s easier to sell a home, and likely even get a higher price, now that this financing is available. It also makes it much more affordable to buy into a manufactured home community. People have more options.”

To be eligible for financing from St. Mary’s Bank, residents living in a manufactured housing park must first apply as a group to Fannie Mae to achieve formal status as a resident owned community. More information is available by calling St. Mary’s Bank at 1-888-786-2791.

About New Hampshire Community Loan Fund
The New Hampshire Community Loan Fund is a nonprofit organization based in Concord that connects people and families with the loans, training and advice that allow them to buy and keep homes, have secure jobs and become economically stable. It has been developing the Resident Owned Community concept since 1984, when it used a loan from the Catholic order Sisters of Mercy to help residents of a park in Meredith create a cooperative and buy the land under their homes.