Two banks offering interest rate discounts for locals

By Joe Pinchot
Herald Staff Writer

October 11, 2008 09:54 pm

— Two banks are offering interest rate discounts for residents who live within Hermitage’s first Neighborhood Investment Program area and need a loan to undertake home remodeling or rehabilitation projects.
First National Bank of Pennsylvania is offering a 1-percent rate discount for home equity loans and caps on closing costs for that and other loans. Huntington Bank is offering up to a 1 percent discount on home equity loans.
Under the Neighborhood Investment Program begun this year, city officials comprehensively evaluate a set area and look for ways to improve everything from streets and sanitary sewers to public safety and code enforcement.
The first neighborhood targeted is south of Highland Road, west of North Buhl Farm Drive, north of East State Street and east of Boyd Drive.
Officials recently awarded a contract to pave and make stormwater improvements on Theota Drive, and build a detention pond at Theota and North Crescent Avenue. Officials are planning other paving, catch-basin replacement and sidewalk projects, and expect all work to take three or four years.
Community Planner Jeremy P. Coxe said the city offers housing rehabilitation for low- and moderate-income residents, but wanted to know if there was any assistance available for residents who do not meet the income guidelines.
That’s where Huntington and First National stepped in.
“We’re not encouraging people to go get loans,” Coxe said. “We’re just encouraging them that, if they want to do improvements to their homes, there’s an opportunity at First National and Huntington to borrow money at a reduced rate.”
First National Senior Vice President Alan F. Bennett noted the bank’s historical and employment ties to Hermitage, where it is based.
“These are our neighbors,” he said. “This is our community. It’s our way to, not only express our community involvement, but also to live it.”
For home equity loans, which Bennett called “second-mortgage financing,” FNB is offering the 1-percent rate discount and capping closing costs at $100. Closing costs usually run $140 and higher, Bennett said.
FNB also is waiving closing costs on its unsecured home improvement loans, which are for loans of $10,000 or less, and home equity credit lines.
Bennett said he expects FNB will be able to offer the deals for the three or four years city officials expect to be focusing on the area. Residents can apply at any FNB office, but will need to prove residency by presenting a copy of a letter sent to them by the city, or another eligibility document.
Huntington is offering a discount of up to 1 percent on home equity loans, with factors such as credit history, amount of loan and method of payment factoring into the actual discounted rate, said Consumer Loan Manager Larry Bilko.
“We’re always looking for opportunities to participate in the communities we’re in,” he said, noting the long presence of Huntington predecessor banks in the Shenango Valley. “It’s important that we continue to be engaged in community efforts.”
Bilko said he does not know how long Huntington will offer the discount. Interested residents must apply at Huntington’s office at 3250 Shenango Valley Freeway.