Community Development Corporation of Brownsville awarded $300,000 grant

The Community Development Corporation of Brownsville has received a $300,000 grant from the Department of Housing and Urban Development Rural Housing and Economic Development Program to provide 10 families long-term mortgage financing.

The HUD award is the fifth received from a $2.4 million lending commitment from four banks, includ-ing Chase Manhattan Bank, Wells Fargo, International Bank of Commerce and Texas State Bank.

Each committed $600,000 for loans to rural and colonia families that don’t qualify for standard mortgage loans.

The money will be used to provide down payment and closing costs grants to families purchasing new homes in the target areas and for families building their own homes.

The funds will also be used to provide a loan loss reserve to banks as well as second lien loans that will allow them to loan to customers unable to qualify for traditional bank loans, according to Don Currie, executive director of CDCB.