What are special purpose credit programs (SPCP)?
Special purpose credit programs (SPCPs) are home loan programs designed to help remove the barriers to homeownership in underserved populations. SPCPs can help empower communities to build wealth and housing stability.
Made available by the Equal Credit Opportunity Act (ECOA), SPCPs set unique standards and benefits to make mortgages more accessible to all applicants. As described by the National Fair Housing Alliance (NFHA), the statute allows institutions to develop SPCPs, “which provide a tailored way to meet special social needs and benefit economically disadvantaged groups, including groups that share a common characteristic such as race, national origin, or gender.”
Special purpose credit programs can support homebuyers by offering down payment assistance, income restriction exceptions and flexible underwriting standards.
Who qualifies for SPCP loans?
Special purpose credit program qualifications do vary, so the best way to learn more is by talking directly to a mortgage professional. Below we have provided some sample SPCPs provided by Guild Mortgage to give you an idea of what they can cover.
Fannie Mae’s HomeReady First program provides a path to homeownership
The FNMA HomeReady First program is an SPCP offered by Guild Mortgage for first-time homebuyers that helps provide $6,500 in down payment assistance towards closing for customers that currently reside in eligible census tracts in specific metropolitan markets with no area median income limits.
Freddie Mac’s BorrowSmart AccessSM could help you buy a home
Freddie Mac BorrowSmart Access is an SPCP offered by Guild Mortgage that helps address homeownership gaps to get more customers into homes. The program provides a total of $3,000 toward down payment/closing costs for first-time homebuyers with qualifying income up to 140% of area median income (AMI).
Freddie Mac’s BorrowSmart AccessSM could help you buy a home
We’re committed to helping our customers make alternative paths to homeownership. Let’s talk about your options. Reach out to us today to learn more.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.