http://www.fanniemae.com/newsreleases/2003/2827.jhtml?p=Media&s=News+Releases
Enhanced Mortgage Options Offered by Leader Mortgage Company Help Malden Family Achieve the American Dream of Homeownership
MALDEN, MA -- In an effort to help make the purchase of two- to four-unit homes more affordable for first-time home buyers in the Malden market, Mayor Richard C. Howard and representatives from Leader Mortgage Company and Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages, today announced the availability of the Enhanced Community 2-4 Family Pilot.
This pilot is designed to address the need to expand affordable homeownership options in areas such as Malden, where 40 percent of the housing stock is comprised of two- to four-unit homes. Just recently, an immigrant family purchased a 2-family home through Leader Mortgage Company by utilizing this pilot.
"The city of Malden has long been a proponent of creative financing programs that help residents realize the dream of homeownership," said Mayor Howard. "Working with the staff of the Malden Redevelopment Authority, we continually promote ways to make owner-occupied housing more affordable and attractive for the first-time home buyers. Programs like these help stabilize a community."
The Enhanced Community 2-4 Family Pilot specifically addresses the two biggest barriers faced by first-time home buyers -- lack of cash reserves and money for down payment and closing costs. Under the pilot, the borrower's down payment can be as little as 3 percent for two-family homes or 5 percent for three- to four-family homes. In addition, borrowers are able to add rental income to their own income in qualifying for a mortgage -- 75 percent rental income for two-family homes; 65 percent rental income for three- to four-family homes. Leader Mortgage Company will originate the mortgages under this pilot and Fannie Mae will purchase the eligible loans from Leader Mortgage, a lender that has demonstrated experience in community lending for two- to four-unit properties.
In Malden, this pilot will directly support the city in its continuing efforts to revitalize neighborhoods by promoting homeownership and community investment opportunities.
"Leader has worked with Fannie Mae on several initiatives to create more affordable homeownership opportunities in Massachusetts," said Sushil Tuli, chief executive officer of Leader Mortgage Company. "We have supported the affordable housing efforts through consumer education programs and cooperative housing efforts with the MHFA in the greater Malden area. We're proud to be a part of this Fannie Mae pilot, and hope to help more Massachusetts families buy and renovate homes of their own in the future."
"The launch of product enhancements such as this enables us to provide our customers with increased lending opportunities in communities where much of the housing stock is comprised of two- and three-family homes," said Jack Wilson, senior deputy director of Fannie Mae's Massachusetts Partnership Office. "This innovative mortgage pilot will help Leader Mortgage Company expand homeownership opportunities in more neighborhoods and more communities in the Boston area."
The Enhanced Community 2-4 Family Pilot is part of Fannie Mae's $2 trillion American Dream Commitment® to increase homeownership rates nationwide to serve 18 million targeted American families by the end of the decade.
For more information on the Enhanced Community 2-4 Family Pilot and other Leader Mortgage Company mortgage products, consumers may call Rita Tuli at 1-800-562-6690, or stop into any of their branch locations, or visit Leader Mortgage's office at 180 Massachusetts Avenue in Arlington, MA.
|
