Qualified first-time homebuyers could receive additional assistance when looking for an Arvest mortgage thanks to a new loan product offered as a joint venture between Arvest Bank and the Arvest Opportunity Fund, a wholly owned, non-bank subsidiary of Arvest.
The Arvest Homebuyer Advantage product helps first-time homebuyers who do not have sufficient down payment funds to purchase a home. The new product allows qualified first-time homebuyers to secure financing with no down payment and no private mortgage insurance fee and empowers homeownership success through financial education requirements. With the Arvest Homebuyer Advantage, the first Arvest mortgage is combined with an Arvest Opportunity Fund second mortgage that closes simultaneously and is collateralized by the same property.
“We couldn’t be more excited to expand our offerings and help more people achieve homeownership, especially as headwinds have increased with affordability and low-inventory concerns,” said Matt Kendall, Arvest mortgage division president and CEO. “Additionally, thanks to our partners at the Arvest Opportunity Fund, this product gives customers the potential to build equity faster.”
The Arvest Opportunity Fund second mortgage allows customers to pay off as much as 20 percent of their mortgage commitment in 15 years. At that point, customers will go from two payments to one. Arvest’s mortgage division will service both mortgages.
“We believe this new product will be appealing to first-time homebuyers for a variety of reasons,” Kendall said. “As always, we encourage those interested in homeownership to visit with one of our lenders to discuss options and determine the best path forward.”
All Arvest Opportunity Fund products have a financial education component, and the Arvest Homebuyer Advantage requires customers to complete a homebuyer education program and credit review session prior to closing.
“Anyone who has purchased a home knows there is a lot to learn as a first-time homebuyer,” said Arvest Opportunity Fund Executive Director Hillis Schild. “Learning how payments will work and understanding costs like utilities and home repairs is critical. We believe the educational component of this product can be just as beneficial to our customers’ financial health as removing a hurdle like lack of adequate down payment funds.”
The Arvest Homebuyer Advantage is the latest effort of the Arvest Opportunity Fund, which launched across the bank’s four-state footprint in August 2022 providing loans and lines of credit to small business customers.
*This product is not offered in areas where USDA mortgage products are available, unless the borrower does not meet USDA loan requirements. Additionally, the Arvest Homebuyer Advantage mortgage product is only offered when paired with the Freddie Mac Home Possible® mortgage. Loans subject to credit approval.