The PrivateBank and the Cook County Land Bank Authority (CCLBA) announced the creation of a new partnership to help eligible participants realize the dream of homeownership by investing in rehabbing vacant homes in Cook County.
Investors “are not the highest and best use,” said Bridget Gainer, Cook County Commissioner and Chairman of the CCLBA. “There are a lot of attractive homes, but the longer a home sits, the harder it is to rehab. The average home buyer has few financing options for purchasing homes needing extensive rehab, so this responds to the pent-up demand for housing from people who don’t have access to cash, but want to buy and live in these homes.”
Through the partnership, The PrivateBank will work with the CCLBA and nonprofit organizations to identify prospective buyers for homes acquired by CCLBA. Buyers will work with nonprofit partners to complete home buyer counseling, while the homes are being rehabbed by pre-qualified contractors, with an emphasis on supporting small businesses in the communities where the properties are located. The PrivateBank will provide construction financing for the rehabilitation work, which will ensure homes are in move-in ready upon completion. The PrivateBank will also fund administration of the program and retain a program management firm to oversee construction, to ensure home owners are protected. Once the homes are complete, the home buyer will be able to finance the home purchase using a conventional mortgage.
Borrowers will be eligible to apply for a SMART Affordable Mortgage from The PrivateBank for the home purchase. The SMART Affordable Mortgage offers low down-payment options, does not require Private Mortgage Insurance (PMI), and has attractive rates. Buyers can use any mortgage, as well as approved down payment and closing costs assistance grants.
The program is targeted to begin on September 1, 2014. More details will be provided in the weeks ahead.
If you are interested in applying for the program, please complete and submit the Pre-Qualification Form for Persons Seeking Property. A list of eligible homes will be made available on or before the program launch.