CRA

CRA loans are Community Reinvestment Act loans, designed to help low- and moderate-income borrowers buy homes and encourage lenders to invest in underserved communities.

These loans are part of a federal initiative — the Community Reinvestment Act (CRA)—which requires banks and mortgage lenders to meet the credit needs of all parts of the communities they serve, including areas that might not otherwise have easy access to financing.

Key Features of CRA Loans
        • Low Down Payment Options: Many CRA programs allow down payments as low as 3% or even 0%.
        • Reduced or No Private Mortgage Insurance (PMI): Some CRA loans waive or reduce PMI, helping lower monthly payments.
        • Flexible Credit Guidelines: Easier approval for borrowers with limited credit history.
        • Local Focus: Available for properties in specific low- to moderate-income census tracts or for borrowers who meet certain income limits.
        • Homebuyer Education: Often includes homeownership counseling or education courses to help new buyers succeed long-term.

Advantages

        •       Helps first-time buyers or underserved borrowers qualify for homeownership.
        •       Offers competitive rates and affordable terms.
        •       Supports community development and revitalization efforts.

Borrowers who:
        •       Have low to moderate income, or
        •       Are buying a home in a designated CRA area, and
        •       Want flexible financing with low upfront costs