The First Nations Market Housing Fund - Let's Chat about this fund and if it will work in your community?

There is a new First Nations Market Housing Fund that will come online in April 2008. The new First Nations Market Housing Fund will help individuals on-reserve to obtain loans. The fund will provide financial backing to First Nations that meet certain criteria, such as a demonstrated ability to manage their finances, loans and housing. The First Nation would provide financial backing to members on-reserve who want to obtain bank loans.
Here is the Process! Once the fund is established, housing loans can be provided by lenders to First Nations residents through the following process:

Once the fund qualifies a First Nation, it will provide financial backing to it. This would be like collateral. The fund’s backing will allow the First Nation to negotiate an arrangement with a lender or lenders to allow its members to obtain housing loans.

Once the First Nation has negotiated the arrangement with the lender or lenders, members of that First Nation will be able to apply for a housing loan, in the same way households do off-reserve, with the same lending terms and conditions. Lenders will review the value of the house, the borrower’s income and the borrower’s ability to repay a loan when their other expenses are considered. Assuming the borrower meets the lender’s criteria, he or she would be approved for a loan.

The fund will not be touched unless both the borrower and the First Nation default.
If the borrower continues to make the loan repayments, the First Nation does not have to repay the lender and the fund is not touched.

If the borrower fails to repay the loan, the First Nation would step in and remedy the default under the terms of its agreement with the lender, using the First Nation’s own resources to meet the obligations.

If both the borrower and the First Nation are unable to meet their obligations to the lender, the lender could then turn to the fund for recourse.

Not all First Nations will be able to meet the fund’s criteria right away. The fund will work with First Nations that do not qualify to help them strengthen the way they manage housing in their communities so that they can meet the fund criteria and obtain loans in the future.

Let's Chat about this FUND!!!! Whaddaya think will it work in your Community???