SANTA ROSA, Calif. – Local not-for-profit Community First Credit Union has crafted a new real estate loan to help local residents purchase lots burned out during the recent firestorms.

The funding allows them time and money to pursue plans, permits and people to rebuild on the property.

Lot loans are hard to find, as not many lenders offer such products. The scant offerings usually come with high interest rates and short terms with which to pay back the loan.

“Rebuilding isn’t easy,” said Monika Besancon, chief lending officer at Community First. “Getting plans and permits can take many months. Additionally, with such a critical shortage of contractors and construction crews, it could take years before everything is hammer-ready.”

Community First’s Lot Loan is a much-needed precursor to an additional and subsequent construction loan.

Only upon completed construction would the rebuilt home then qualify for a traditional final mortgage – which would then pay off the lot and construction loans.

To keep the interest rate low on its Lot Loan, Community First amortizes payments over 30 years, much like a traditional conventional mortgage.

To give residents who are rebuilding enough time to round up all plans, permits, and construction contracts, Community First doesn’t require full repayment of the loan for 15 years.

“Sadly, more than 8,000 homes were destroyed in our market area in October of last year. In this current month, the Mendocino Complex Fire has destroyed another 140 homes. We felt we needed to do something to help the communities we serve rebuild, and to get families back to their homes. This 30-due-in-15 Lot Loan is the financial kick-starter that does just that,” said Besancon.

For more information visit https://www.comfirstcu.org/.