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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.

By |Published On: March 6th, 2024|Categories: Mortgage 101, Products and Programs|Tags: , , , , , , |

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About the Author: Guild Mortgage

Founded in 1960 when the modern U.S. mortgage industry was just forming, Guild Mortgage Company is a nationally recognized independent mortgage lender providing residential mortgage products and local in-house origination and servicing. Guild’s collaborative culture and commitment to diversity and inclusion enable it to deliver a personalized experience for each customer. With more than 4,000 employees and over 250 retail branches, Guild has relationships with credit unions, community banks, and other financial institutions and services loans in 49 states and the District of Columbia. Guild’s highly trained loan professionals are experienced in government-sponsored programs such as FHA, VA, USDA, down payment assistance programs and other specialized loan programs. Guild Mortgage Company is a wholly owned subsidiary of Guild Holdings Company, whose shares of Class A common stock trade on the New York Stock Exchange under the symbol GHLD.