US-based Golf Savings Bank, an originator of residential home loans, has introduced a new lending incentive plan that provides borrowers a lending credit of 3% of the sales price of a home up to a maximum of $20,000.
This credit can be applied against closing costs or can be used for seller concessions, the bank said.
Golf Savings Bank added that this special financing is currently available on new construction properties where the property is financed by the bank and is expected to apply to home sales that close by the end of April 2009. Any other seller contributions will be in addition to this incentive programme.
Donn Costa, executive vice president of Golf Savings Bank, said: As a result of our participation in the US Treasury’s capital purchase programme through our parent company Sterling Financial, Golf is increasing lending incentives to help stimulate demand for and facilitate financing of single family homes in the Pacific Northwest.
So far, this programme has been received successfully by both buyers and builders because it applies to all new construction property in any locations financed by Golf. In the first three weeks of the programme, Golf approved $30m in loan originations associated with $800,000 in lender credits to our borrowers.
