Day Air to help lower-income earners afford homes with $700k grant

Day Air Credit Union will use a $700,000 grant to help individuals who wouldn’t otherwise be able to buy and renovate homes.

The credit union received the grant from the U.S. Department of Treasury’s Community Development Financial Institutions Fund to further invest in the underserved communities in the Miami Valley. Day Air plans to offer renovation, no money down loans and other assistance to roughly 125 to 150 veterans, first-time home buyers and low-to-middle income borrowers, according to a statement.

One loan option will require no down payment for first-time home buyers. Day Air can also offer perks that don’t follow traditional rules under the grant, including that the no-money-down loan won’t require personal mortgage insurance typically paid if down payments are less than 20 percent, said John Theobald, vice president of lending at Day Air.

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“There’s a little bit of an additional risk any time you’re lending 100 percent financing to a borrower, and that’s where the grant comes in. That sets back as a little big of an insurance policy,” he said.

There will also be renovation loans for people willing to buy properties in Dayton that have “deferred maintenance and challenges,” Theobald said.

“That’s a win for the homeowner because hopefully they improve it to a point that it creates equity for themselves right out of the gate and it’s a win for the neighborhood and the community because they’re…beautifying the neighborhoods,” he said.

Veterans will be able to get loans with no funding fees and cheaper closing costs, too.

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Though nothing is formal yet, Day Air hopes to partner with Montgomery County Land Bank or similar projects to finance homes after they’ve been rebuilt without a traditional appraisal, Theobald said.

Under this program, a buyer could get a 15-year mortgage with payments still cheaper than they could rent almost anywhere in the region, he said.

Day Air will also expand financial education and outreach programs to thousands of underserved residents each year.

The credit union has been operating in the Miami Valley since 1945 and has more than 44,000 members. It became eligible for the loan for the first time this year after determining that a majority of members fall into the low-to-middle income category and received a designation as a Community Development Financial Institution.

As a CDFI designated credit union, Day Air can apply for the grant every year as long as they provide at least $10 million in loans over two years.


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