Midfirst to help rotting urban core

[Patrick]

It's nice to see Midfirst Bank stepping up to try to help the deteriorating urban core in Oklahoma City. With all of the interest moving to suburban areas, it's left much of the inner city area in a state of decline.
Hey, you can't beat a good solid historic home. I'd love to see some of our older neighborhoods restored.

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"City, MidFirst join in revitalization plan
By Don Mecoy
The Oklahoman

Oklahoma City and MidFirst Bank have teamed up to boost revitalization efforts in urban neighborhoods by helping fund home rehabilitation and ownership. For more information, call Cindy Motil at 767-7324.
Qualified applicants can receive funding to buy and improve homes in a designated area through a combination of deferred loans from the city and a repayable loan from MidFirst.

The deferred loan must be repaid only if the house is sold, rented, leased or if the title is transferred. In other words, as long as the borrower lives in the house, the city loan doesn't have to be repaid.

The so-called Expanded Target Area lies within the borders of N 50 Street on the north, S 59 Street on the south, Bryant Avenue on the east, and Portland Avenue on the west. Applicants' household income must be less than or equal to 80 percent of the current year federal median to participate in the program.

After receiving credit approval from MidFirst, applicants work directly with officials from Oklahoma City's Planning and Neighborhood Services with the Department of Housing and Neighborhood Programs to identify a property for purchase and rehabilitation.

The maximum city purchase rehabilitation amount is $33,500, and the minimum repayable loan amount with MidFirst is $5,000.

The program could significantly reduce monthly housing expenses for participants, said Bob Dailey, co-founder of the program and the Oklahoma City Housing and Rehabilitation Department.

"Depending on the situation, it's possible for some people to own their own home for less than the cost of renting," Dailey said.

Cindy Motil, program co-founder and community development officer with MidFirst Bank, said the effort is aimed at reviving urban neighborhoods by increasing home ownership and property values. "

[BDP]

Cheers to mid-first. I've been thinking about moving my money to them for some time. This just gives me more reason.

this confused me though:

The maximum city purchase rehabilitation amount is $33,500,

Does this mean 33.5k is the maximum purchase amount of the property or the maximum amount of the deffered loan? In other words, is it saying that it only applies to homes purchased for 33.5k or less?

[floater]

It sounds like it's the maximum amount the city is willing to loan -- homes can be purchased for more.

Reading this makes me proud. Inner city settlement being facilitated not by the federal government, but by a local private lender. Midfirst and Cindy Motil ought to be commended for this initiative. Hopefully they'll do a good job of community outreach, and that the program will get a good response from prospective homeowners.

[Pete]

The way I read this is that you could buy a home within those boundaries for any amount, but not have to pay interest or principal on $33,500 of the amount borrowed.

At 6%, that's about $2,000 a year in interest savings.

[BDP]

Thanks. Hopefully, that is the case. The word 'purchase' kind of threw me off.