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Full-Cycle Lending is a system that enables lenders,
government agencies and nonprofit NeighborWorks® organizations to work together to provide homeownership opportunities
to families who might not qualify for – or know how to get – conventional mortgages. The Full-Cycle Lending Process has six components:
- NeighborWorks® Organization Partnership-Building
- Pre-purchase
Homebuyer Education
- Flexible Loan Products
- Property Services
- Post-purchase Counseling
- Neighborhood Impact
What is Full-Cycle Lending?
Full-Cycle Lending is a system of borrowing, as well
as of lending, of a consumer-friendly approach that takes seriously the needs of first-time buyers and the barriers they face
in achieving the dream of homeownership. It’s a process that benefits everyone. Residents can overcome hindrances to
ownership as the process is demystified, they save for a down payment and they secure their home and mortgages. Lenders can
invest with confidence about an owner’s ability to repay their mortgage. Local government officials can take pride in
watching neighborhoods change. More and more homeowners will stake a claim in their communities, enhancing the tax base and
contributing to the overall community renewal. The non-profit partnerships – Neighborhood Housing Services and other
members of NeighborWorks® - have the satisfaction of seeing their technical services result in new homeowners. Full-Cycle
Lending means a positive impact on communities.
What is the Great Benefit of Full-Cycle
Lending?
Full-Cycle Lending is a means, not an end. As this comprehensive
system becomes more established, homeownership rates among first-time homebuyer families should rise. We believe this will
cause neighborhoods to become safer, individuals to regain hope and a sense of belonging, and families to reclaim their schools,
their streets, and their economic strength. By stimulating reinvestment in NeighborWorks® communities, Full-Cycle Lending
can be a powerful force that will lead to a renaissance in neighborhoods across America.
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