National Bank of Commerce: No Place Like Home

NBC always searches for and supports innovative ideas and programs that make owning a home more attainable and also affordable, and the Economic and Community Development Department of the City of Bessemer provides just that type of program. Through the Community Development Block Grant funds (CDBG), which is provided by the Department of Housing and Urban Development, the City of Bessemer has developed a down payment and/or closing cost assistance program designated for low-to-moderate income families who would like to purchase a home within the city limits of Bessemer. "In order for a program like this to work, we needed a financial institution that we could work well with," said Tom Cannon with the City of Bessemer. "NBC has provided us with a working relationship that will hopefully produce more homeowners in the future."

NBC is ecstatic to be working with a program of the caliber because of its creative financing which increases the opportunity for an individual or family to become homeowners. The program is designed to provide a three bedroom, two bath house and amenities to low-to-moderate income individuals. NBC provides first mortgage financing in the amount of $58,000 (based on a $81,500 sales price), which is backed by a second mortgage from the City of Bessemer with very favorable interest rates. The second mortgage is approximately $22,000 and is financed over a thirty-year amortization. The program also allows for a lot loan with payments deferred over a thirty-year time span (the exact amount of the deferred lot loan depends on the exact cost of the lot). This innovative and creative financing makes homeowner-ship affordable to participants because the borrower has a first mortgage loan below an 80% loan-to-value ratio, which eliminates the cost of private mortgage insurance.
'When facing the issue of affordable housing within the metropolitan area, it is imperative that the public and private sectors can work together," said LeDon Jones, community development officer at NBC. 'With the limited number of resources available to most low-to-moderate income families, down payment assistance programs can be great vehicles to homeownership."

In order for this new reconstruction program to be effective and have a stabilizing effect in the community, the quality of houses being built under the program has to measure up. This important aspect is accomplished by the willingness and expertise of approved contractors participating in the program: Gary Hand of Hand Construction; Mike Mitchell of Mike Mitchell Homes, LLC; and John Wright of JJ. Wright & Associates.

The City of Bessemer and NBC have worked together to make thirteen Bessemer citizens new homeowners, reflecting NBC's investment of approximately $728,000 in low-to-moderate income communities in the City of Bessemer.

NBC's relationship with the City of Bessemer has helped ensure that the dream of homeownership can become a reality

For more information about the new reconstruction program or any of NBC's many other mortgage options, please contact LeDon Jones with National Bank of Commerce at (205) 421-2211, or Tom Cannon with the City of Bessemer at (205) 424-4060.