Submitted by: Fannie Mae
Categories: Community Development
Posted: Jan 11, 2001 – 11:00 PM EST
Jan. 11 /CSRwire/ - Pittsburgh Mayor Tom Murphy today joined Fannie Mae (FNM/NYSE), the nation’s largest source of financing for home mortgages, and the Pittsburgh Community Reinvestment Group (PCRG) to celebrate the availability of the National Training and Information Center’s $50 million Low Down Payment Home Mortgage initiative. Through an expanded group of lender partners, $32 million of the $50 million in mortgage funding is being made available under this initiative for low- and moderate-income residents in Pittsburgh and Allegheny County. The Low Down Payment Home Mortgage enables home buyers in the city and county to purchase a home with as little as 1 percent down from their own funds, and is only offered in five cities throughout the United States. Neighborhood Housing Services (NHS) of Pittsburgh — the first NHS in the country — is providing the required home-buyer education for potential home purchasers under this initiative. Councilwoman Valerie McDonald and State Representative Joseph Preston also attended the announcement.
"This innovative partnership will continue to make the dream of homeownership a reality for many Pittsburgh residents," said Mayor Murphy. "I commend Fannie Mae, PCRG, and all of the lenders for implementing an innovative, unique, low down payment mortgage product.
Participating lenders include: Dellwood Mortgage Corporation, Dollar Bank, Fidelity Bank, Howard Hanna Real Estate Services, Mellon Bank, National City Bank, PNC Bank, Three Rivers Bank, and West Penn Financial.
The 1 percent Low Down Payment Home Mortgage is a $50 million single-family mortgage loan initiative designed to help more low- and moderate-income borrowers purchase homes in NTIC affiliate locations, including Allegheny County. To qualify for this initiative, borrowers must earn at or below 100 percent of the area median income for Allegheny County ($44,600). These loans require a 3 percent down payment, with only 1 percent coming from the borrower’s own funds, and 2 percent that can come from a gift from a relative, a nonprofit organization, or unsecured or secured loans from nonprofit organizations or government agencies (Community Seconds® loans). Sources of funds for closing costs can also be in the form of a gift. Fannie Mae will purchase or securitize these loans. The Low Down Payment Home Mortgage Initiative is also available in four other cities with NTIC community group affiliates: Chicago, IL; Cincinnati, OH; Des Moines, IA; and Syracuse, NY.
"Homeownership makes better communities, a better economy, and a better future for our children," said Councilwoman McDonald. "Thanks to all of the partners, we look forward to seeing the positive impact this initiative will have in the City of Pittsburgh."
"One of the most frequent impediments to homeownership is a lack of down payment funds," said Howard B. Slaughter, Jr., director of Fannie Mae’s Pittsburgh Partnership Office. "We are pleased to work with the lenders, PCRG, NHS of Pittsburgh, and the Urban Redevelopment Authority of Pittsburgh to help minimize this obstacle."
"We are glad to be a part of today’s announcement, and we would like to thank each partner for their key role in increasing affordable housing opportunities in the City of Pittsburgh and Allegheny County," said Jackie Hill, executive director of PCRG.
"When the Low Down Payment Home Mortgage initiative was added to the Pittsburgh Home Ownership Program in 1999, it began with only two lenders," said Mulugetta Birru, executive director of Urban Redevelopment Authority. "The program has been very successful and we now have a total of nine lenders participating, and we have allocated over $9.5 million in mortgages under the initiative. We would like to thank Fannie Mae and our housing partners for making this possible." The URA has provided quality low-interest mortgage products to Pittsburgh residents for more than 20 years.
NTIC’s Low Down Payment Home Mortgage initiative available in the City of Pittsburgh and Allegheny County, is part of Fannie Mae’s "American Dream Commitment," a pledge to help shrink the nation’s "homeownership gaps" through a new 10-year, $2 trillion initiative to increase homeownership rates and serve 18 million targeted American families by the end of the decade. The American Dream Commitment places special emphasis on increasing homeownership among minorities, young families, women-headed households, new immigrants, and others whose homeownership rates lag the general population.
For more information about NTIC’s Low Down Payment Home Mortgage, consumers may call:
Neighborhood Housing Services of Pittsburgh Mellon Bank
(412) 281-9773/(412) 578-2400
Dellwood Mortgage Corporation National City Bank
Dollar Bank PNC Bank
Fidelity Bank Three Rivers Bank
(412) 682-0311/(412) 856-8410
Howard Hanna Real Estate Services Urban Redevelopment Authority
(412) 976-9000/(412) 255-6677
For more information, please contact: