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Why Quontic is a Community Development Financial Institution

You’ve likely heard about how proud we are that Quontic is a U.S. Department of Treasury designated Community Development Financial Institution (CDFI.) Ever wonder why?

Firstly, it’s kind of a rare designation. Of the 5,033 banks in the U.S., fewer than 3% are designated CDFIs.

In the early days at Quontic, our CDFI designation also helped us land on a company mission: to serve the underbanked. In fact, we functioned more-or-less as a CDFI without even knowing what one was—meaning, we were lending to a diverse group of low-income families, immigrants, small business owners, and others who are underbanked. And, in order to accommodate their unique financial needs, we were creating adaptive loan products, like our Non-Traditional Mortgage, just for those borrowers.

We’re proud that our lending practices are still adaptive, and that our organization was founded upon a mission to break the system for financial empowerment.

Today, with our CDFI status, we’re lending to a broader audience of borrowers, including those who need our help the most. We’re talking about underbanked families, immigrants who by virtue of cultural nuance may pool resources to acquire real estate, entrepreneurs like small business owners, gig-economy workers like rideshare drivers and nannies, and others who don’t fit the mold of the more traditional banking model. And let me tell you, this group of non-traditional income-earners is only growing in our post-pandemic society.

Additionally, many of our customers are people who have already been turned away by other banks. But not Quontic. We’re able to serve them because our CDFI status exempts us from having to collect all of the traditional income documentation others require simply in order to calculate a rigidly adhered to debt-to-income ratio used in determining whether the application lives or dies. Instead, we’re able to review each customer’s situation case-by-case and make a decision based on the bigger picture. What happens often is that people who are financially-capable to borrow just don’t have the right paperwork to back it, and can be denied loans from larger banks. This is where we step in. We’re able to lend to these gig-workers, small business owners, entrepreneurs… these good, deserving borrowers. 

Being a Community Development Financial Institution means also we get to help generate economic growth, particularly in financially distressed communities. Because CDFIs are mission-driven financial institutions that take a market-based approach, we’re able to participate in CDFI Fund programs that inject new sources of capital into neighborhoods that lack access to financing. Basically, we put money into communities that need it.

As a CDFI, we’re excited to help even more underserved communities achieve the dream of homeownership. Whether you’re asking about getting a mortgage when you’re self-employed, wondering what credit score you need to buy a house, or interested in learning more about our Non-Traditional Mortgages, our lenders have the knowledge, experience, and adaptive lending products to make it happen. 

It’s YOUR home, and we make the homebuying process all about YOU.

As a nationally recognized digital bank, we take pride in helping communities across the country with home lending. Whether you’re a small business owner, a retiree, a real estate investor, an immigrant or foreign national, we have unique loan programs to help you home. Visit our website to learn more.

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