I saw this article on Oregonlive.com explaining how Banner Bank in Oregon is going to offer 3.875% interest on loans for newly built homes. There are 243 homes that are builder owned, that will qualify for these loans. All the homes have been financed by Banner or Community Financial and are now builders inventory. The funds come from the Governments TARP money and the bank is using the funds to ease pressure on the bank and the builders.
The first winner is of course the home buyer, who is getting an outstanding loan with an already low priced home, which will make their life easier.
The second winner is the builder which is getting rid of inventory that is only costing him money today and not producing any profit.
The third winner is the bank, when the builders pay down their loans instead of going belly up.
And the fourth winner is the government seeing TARP money do some good in the society, releasing pressure and moving the economy again.
This article which is written by Jeff Manning is an upbeat read and I recommend that you all follow this link and read it.
After reading this article I wonder, why we aren't seeing other lending institutes doing the same thing.
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