Clearinghouse CDFI
Frank and Terri King Placentia, CA
When Frank and Terri King lost their home in January 1998, their finances began to spiral downward. Unable to afford the high rents in Orange County, the couple and their four children moved in with Mr. King’s parents and started saving for another house.
That goal proved elusive. When their financial problems persisted, the Kings filed for bankruptcy. Even when they did manage to put away some money for a down payment, they could not get a decent loan from a traditional lender. “If we could qualify, it was at such a high interest rate that, with housing prices going up the way they were, there wouldn’t have been any way I could have afforded to get into a house,” Mr. King says.
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Mr. King and his family lived with his parents for eight years. But everything finally began to change when he saw a flyer for Clearinghouse CDFI and gave them a call.
Launched in 1997, Clearinghouse CDFI is a for-profit corporation committed to financing “unbankable” projects benefiting low-income families and underserved communities throughout the state. The organization provides direct loans for affordable housing, community development projects, small businesses, and other activities qualified under the Community Reinvestment Act. In 2006 alone, Clearinghouse CDFI funded 260 loans totaling $137 million.
The Kings were among the borrowers Clearinghouse CDFI financed in 2006. Clearinghouse gave them a $324,000 first mortgage at 5.125 percent. The CDFI also helped them to secure a Mortgage Assistance Program loan from Orange County to make the down payment.
When the Kings moved into their house in Placentia, they felt as though they had come home again. “It gave us a sense of completeness,” Mr. King says. “It had seemed like something was missing, then once we had our home, it was just overwhelming. My wife would cry at the drop of a hat, just thinking about having a home again.”
