Community Development Loan benefits and success stories

August 30, 2021
by Chris Teague
Sept. 20, 2020
Last updated: November 10, 2022

The information on this page is provided for the benefit of mortgage professionals and not intended for consumers or the general public.

Our successful Community Development Loans speak for themselves. But that won’t stop Quontic loan officer Steven Ho from sharing how he’s used these non QM loans to help borrowers who are low-income, small business owners, entrepreneurs, and more.

Let’s start off with the definition of a Community Development Loan.

We coined the term at Quontic to describe the loan products we can uniquely offer because of our Community Development Financial Institution, or CDFI, status. Our Community Development Loans, or CDLs, include an array of non-qm loans that help real people get real loans.

Who needs a Community Development Loan?

They are good borrowers who just don’t fit the conventional mold and are not being served by other banks. They could be a rideshare driver or a nanny; a small-business owner or a yoga instructor who manages their own practice. They could also just be somebody who falls into the low-income category. All of these people have one thing in common.

They can all be worthy borrowers who have been turned down by other banks, but who Quontic can help with a Community Development Loan. We’re not always the bail out bank, but we do save a lot of homebuyers their deposits.

Many are first time home buyers or current homeowners who qualify for these loans simply by possessing a strong credit score, and who can save up a solid down payment.

A non-qualified mortgage can also suit borrowers who cannot show work history for the past 3 years. This is a huge boost for anybody whose job isn’t consistent, or who’s had a significant career impact due to COVID.

Consider rideshare drivers, who likely have a 1099 instead of a W2 and it’s variable. As they do rides, they still generate income, but it’s not consistent. For banks that don’t do non qm lending, that lack of consistency is often a difficult factor. I’ve worked with a ton of rideshare and taxi drivers who come to me at the 11th hour with a loan that another bank has been sitting on for months. Time after time, we close on a Community Development Loan for them with no issues.

If your career has been impacted by COVID or you’ve made a career change, the flexibility of our CDL product line means you don’t need a 3 year “recovery period.” At this point in the pandemic, we’re known for our Community Development Loans. It’s their flexibility that allows us to uniquely simplify the process. And we can make it happen for you.

For example, a gentleman I was working with on Long Island put down a significant downpayment. He then had a major mid-career change in the IT industry and had to relocate. Relocation loans are difficult loans to do, and other lenders weren’t able to help. When he hopped on a Zoom call with me, he only had a month left to close.

We closed in 18 days.

He was so pleased that he recommended us to another buyer. What really made my day was when he Zoomed me from the new house! This is what our CDL looks like in play. 

There are so many more stories. Most of the loans we do are success stories — that’s success in itself! Many times they become a declaration from another lender where some pieces of the puzzle didn’t fit. That’s when the client comes to us. COVID has had a significant impact on people’s financial and career situations. For many, it has changed their perspective. And it might have affected their ability to get a loan.

Now is the right time to act. Check out our website and prequalify today.

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