Southern Mutual Financial Services

In 2000, Southern Mutual Help Association created an affiliate corporation to help meet the affordable capital needs of rural Louisiana families.

Certified by the U. S. Treasury as a Community Development Financial Institution (CDFI), Southern Mutual Financial Services, Inc. provides affordable mortgage capital to families across the state of Louisiana who cannot access first mortgage loans from “traditional” lenders.

Southern Mutual Financial Services, or SMFS, provides a unique mortgage product that allows up to 100% Loan to Value, making home ownership possible for families who have “good” credit and steady income but do not have the 10% to 20% down-payment required for a conventional mortgage loan.

SMFS does not require costly Private Mortgage Insurance (or PMI), an additional expense that often drives the monthly payment beyond the reach of many hard-working families.

SMFS is an important component of Southern Mutual Help Association’s work to provide on ramps to prosperity for low- to moderate-wealth families in the state of Louisiana. SMHA created a $100 million secondary market with a local bank – the first of its kind – that has contributed to SMFS’s moving $17.2 million in affordable capital into the hands of families.
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