Joint Collaboration Launches “Gateway Neighborhood Mortgage”

Drive to increase opportunities for home ownership

May 7, 2019 | 2 min reading time

This article is 2 years old. It was published on May 7, 2019.

Photo

ST. LOUIS — After decades of discriminatory housing policies, the City of St. Louis, in collaboration with St. Louis Development Corporation a number of nonprofits, various banks and a community financial institution (CDFI) in launching the “.”Gateway Neighborhood Mortgage

The Gateway Neighborhood Mortgage will provide loans to qualified borrowers to purchase and improve homes ion neighborhoods with depressed home values. The loans allow up to $75,000 over the appraised value for the purchase and renovation of homes. Historically, African American neighborhoods have faced depressed home value and economic disinvestment which impedes re-development and prohibits families from building wealth through homeownership. Without access to mortgage lending for purchase or home improvements, homes in these neighborhoods become vacant and fall into disrepair, while families lose out on becoming homeowners in their own neighborhoods.

Otis Williams, Executive Director of St. Louis Development Corporation stated, “The appraisal gap is a significant barrier to providing equitable access to badly needed financial resources in neighborhoods that need them most. These funds are intended to close that gap.”

This fund, which is modeled after the Detroit Home Mortgage Initiative, would provide loans for qualified community residents to purchase and rehab homes above their appraised value and remove the barriers caused by the appraisal gap. Participating banks will offer the loan product, providing homebuyers with consistent terms and rates on qualified affordable mortgages. In addition, homebuyers will receive homebuyer counseling and a project manager will help oversee renovation of the homes.

Williams stated, “This fund will be big for the City of St. Louis. It will allow people to invest in themselves, their neighborhoods and their future.”

About the St. Louis Development Corporation (SLDC)

St. Louis Development Corporation (SLDC) is an umbrella, not-for-profit corporation organized under Chapter 355 of the Missouri State Statutes with the mission of fostering economic development and growth in the City of St. Louis by stimulating the market for private investment in City real estate and business development and improve the quality of life for everyone who lives in, works in, and visits the City.  The mission of the SLDC is to stimulate the market for private investment in City real estate and business development and improve the quality of life for everyone who lives in, works in, and visits the City of St. Louis. If there are questions, please contact John Parker, Director of Corporate Communications and Media at 314-363-1102 or email him at parkerj@stlouis-mo.gov

  • Contact Information:

  • Department:
    St. Louis Development Corporation
  • Topic:

Most Read News

  1. SLATE Executive Director elected to the United Way Board of Directors SLATE Executive Director elected to the United Way Board of Directors release
  2. St. Louis City and County to Require Masks to Limit Spread of COVID-19 Delta Variant As COVID-19 hospitalizations rise and the Delta variant spreads, the City of St. Louis and St. Louis County will require masks to be worn in indoor public places and on public transportation beginning Monday.
  3. Mayor Tishaura O. Jones Names Sheena Hamilton New St. Louis City Counselor Mayor Jones announced the appointment of prominent local attorney Sheena Hamilton as St. Louis City Counselor. Hamilton’s first day in the position will be September 27, 2021.

Was this page helpful?      



Comments are helpful!
500 character limit

Feedback is anonymous.