Mortgage deals target high-tech workers
The city offers technology workers discounts on mortgages through two lenders.
Employees of local technology firms who buy a home in Riverside could qualify for lower mortgage rates under a city program designed to foster a high-tech sector.
They can also take advantage of lower home-equity loan rates, reduced fees and other benefits offered by Altura Credit Union and Provident Savings Bank, Riverside business development coordinator Greg Lee said Tuesday.
"It's a creative incentive," he said. "We are not giving out money. But we are still providing a benefit for a company coming here."
Similar programs exist for teachers, police and other public-sector employees, but Lee said he hasn't heard of anything similar for high-tech workers.
"It's a lot of work and it's less profitable for us, but we want to make sure we are adding more value to the community. We need these people in Riverside," said Craig Blunden, president of Provident, a Riverside bank specializing in home loans.
"It's a good deal," he said, adding that someone who uses the incentive package "would save $1,000 to $2,000 over someone who just walked in the door."
Two years ago, Altura participated in an offer by Riverside Community Hospital, which was recruiting nurses, said Altura Senior Vice President Ricki McManuis.
So far, Provident and Altura haven't had any takers for the high-tech offer, but Lee said that might change now that the city is mailing out informational fliers.
High-tech workers are often attracted to companies in the Silicon Valley or Southern California's beach cities, so anything the city can offer is a plus, said Sundip Doshi, chief executive of Riverside software company Surado Solutions.
Although the financial benefits of the mortgage incentive may not matter as much to someone making a large salary, it could encourage them to buy a home and become rooted here, which might convince them to stay longer, he added.
SmartRiverside is a city initiative created to help attract high-tech companies and their employees to Riverside and to keep employers from leaving.
Other aspects include low-interest loans for technology companies that want to improve their office or lab space, computer loans, and digital-literacy training.
To be eligible for the mortgage incentive, an employee must work for a high-tech company located in Riverside and buy a home inside the 86-square-mile city limits.
The benefits are slightly different at the two lending companies, but both offer flat fees, a slightly lower interest rate and no points.
Altura and Provident are both based in Riverside, but Lee said financial institutions headquartered in other cities could join the program as long as the home is purchased in Riverside.
Earlier this month, the city council criticized Riverside's Raincross Credit Union for choosing to merge with another credit union not based in the city.
The council also discontinued its relationship with Raincross and encouraged city employees and residents to do business with local financial institutions.
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