Community Development

Partners Software
The Federal Reserve System is offering a computer software package designed to serve as an analytic tool for developing affordable housing loan programs for low- and moderate-income applicants. The Partners software can help determine whether a potential homebuyer can qualify for a home purchase loan. The software can be an excellent learning tool and development aid for bankers, community groups, government agencies, and community development practitioners interested in providing affordable housing loans.

While the Federal Reserve System does not endorse any specific underwriting criteria, we hope the software will assist institutions in developing safe and sound loan programs that offer the flexibility and innovation to meet local home mortgage credit needs.

Features

Loan calculations are instantly computed on the main screen to determine whether an applicant can qualify for a home purchase loan based on the underwriting and financial information presented; ten qualifying techniques are offered for those who do not qualify for the requested loan.

Secondary market considerations are presented for those interested in determining the approximate premium or discount on loans sold in the secondary market.

Amortization schedules can be produced for fixed-rate monthly payment loans.

Testing capabilities are available to determine if the underwriting criteria under consideration will qualify low- and moderate-income persons.

Equity build-up computations can be developed to educate users, homebuyers, and lenders on the amount of equity buildup provided through loan repayments.

Back to top

Options to Help Qualify Applicants

Partners offers ten potential loan-qualifying techniques, from self-help actions to loan subsidies or grants, to help qualify applicants.

Are buyer expectations reasonable? Partners calculates the applicant's current potential without any subsidies or grants.

Reducing debts or increasing income, when possible, can help applicants qualify. Partners computes the amounts.

Changing underwriting criteria, such as debt ratios, interest rates, or down payments can qualify applicants. Partners provides the calculations.

When subsidy loans or grants are needed, Partners determines the exact amounts.

Partners shows you how down payment assistance deposited in a bank account can reduce the amount of subsidy needed to qualify applicants.

Tax abatements can be used to qualify loan applicants. Partners shows you how.

Nonprofits have unique opportunities to subsidize borrowers without grants. Partners provides the calculations.

Back to top

Technical Information

The Partners model is now an online program.  Assistance with operating the program is available at the website.  For technical assistance or information about how the calculations in the program are done, call the Partners Technical Assistance Hotline at the Federal Reserve Bank of Atlanta: (404) 589-7358.

Back to top

Distribution

Partners can be distributed under the following conditions:

  • The software may not be altered in any manner.
  • Any distribution must be without direct or indirect charge of any kind.
  • The software may not be distributed in connection with any commercial venture without the prior written permission of the author.

Back to top

Accessing Partners Software

The Partners program is available at the Federal Reserve Bank of Atlanta's Community Development website.  If you wish to learn more about the program or use it, please visit http://www.frbatlanta.org/partnerssoftwareonline/dsp_main.cfm?clear=1# .

Back to top