Advantis Credit Union Rehab Mortgages Helping Buyers Turn Neighborhood “Eyesores” into Dream Homes While Revitalizing Communities

Wendy Edwards
Vice President of Marketing & Human Resources

Claudia Johnson
Claudia Johnson Strategic Communications

Misti Rooney
Community Relations Officer

Taking the lead in socially responsible lending, Advantis addresses the challenges of rampant foreclosures, helping borrowers spiff up distressed homes and neighborhoods

Milwaukie, OR (October, 2012) — A glut of local foreclosures and abandoned, distressed homes are creating an onslaught of complaints and safety issues in Portland neighborhoods.  The Oregonian reported earlier this year on the problems presented by these distressed homes in the region stating that the homes are attracting squatters and have become havens for drug use and illegal activity.  Advantis Credit Union is addressing this very real community problem with a new Rehabilitation Mortgage Program, changing the way borrowers — with a vision — can acquire their dream home and improve neighborhoods.

Stripped and often devoid of amenities, houses that are vacated or foreclosed upon are frequently viewed as unmarketable by realtors and lenders – and blots on neighborhood home values. Average buyers don’t have finances available to renovate them.  Now, there is one simple mortgage loan to cover the purchase of the home plus all intended upgrades.  A typical buyer or refinancer can afford to look beyond the less-than-perfect-house and not only imagine its improvements, but actually start making them. The side effects are notable; the home value immediately goes up, and the neighborhood gets a boost.

“The right thing for lenders to do is step up and support people who are willing to invest capital and sweat equity to help solve the issues presented by foreclosures in our neighborhoods,” says Advantis’ Darin Walding, Real Estate Loan Manager.  “We are dedicated to helping buyers with a vision fix up a house to make it an attractive, livable home and create value for themselves.  Bringing one good rehabbed house into the neighborhood supports the entire community.”

Advantis handles most loans in-house from application through closing with an emphasis on personal service.  After a short online application process, Advantis’ mortgage consultants meet with borrowers and together, they help create a renovation plan and budget.  The property will be appraised in both “as is” and “after improved” condition.  Advantis will loan up to 90% of the “after approved” value. One to four units are eligible and no mortgage insurance is required. No prepayment penalties exist either.

Advantis member, Brian Fuller, recently utilized a Advantis Rehab Mortgage to complete his upgrades in a NE Portland neighborhood.  “Advantis’ new Rehab Mortgage program enabled us to purchase a small home in a NE Portland neighborhood-in-transition,” says Fuller. “We not only renovated the main house but added an Accessory Dwelling Unit (ADU) or “mother-in-law” cottage for our main residence.  We were able to not only renovate our property, but create additional affordable housing in a neighborhood with several vacant homes.”

Eligible improvements and projects range from minor to major remodels. Some include changes that improve the appearance and modernize the home; others include: reconditioning plumbing, room additions, improving roofing, decks, and landscape enhancements.

“Simply put, our Rehab Mortgage Program is win-win – for those willing to invest resources and sweat equity in a fixer-upper,” says Walding. “We are helping people get more for their money, while stabilizing housing and helping people’s dreams come true, while revitalizing neighborhoods.”

About Advantis
Advantis Credit Union, with $960 million in assets, is one of Oregon’s largest member-owned not-for-profit, financial cooperatives with over 48,000 members and five branches in the Portland metro area. Advantis is one of the oldest credit unions in Oregon, serving the Portland metro area for over 84 years. Membership in Advantis is open to anyone who lives or works in  23 counties in Oregon, including: Benton, Clackamas, Clatsop, Columbia, Coos, Curry, Deschutes, Douglas, Hood River, Jackson, Jefferson, Josephine, Klamath, Lane, Lincoln, Linn, Marion, Multnomah, Polk, Tillamook, Wasco, Washington, or Yamhill counties in Oregon and anyone who lives, works, worships, or attends school in the state of Washington.

More News