Deel HINTS FOR HOMEBUYERS New Mortgage Programs Help More Americans Achieve Homeownership (NAPSA)—Men and women who have come from another country to make the United States their home may soon have a new way to buy a home. According to the Joint Center for Housing Studies at Harvard University, immigrants will soon make up more than one-quarter, and minorities more than twothirds, of the predicted 12 million new households that will be created by 2010. This growth will result in an increased demand for homefinancing. A major mortgage lender has developed two new programs to give these groups additional home financing options. According to Rick Gillespie, executive vice president, GMAC Mortgage, “By providing innovative home financing solutions, we are enabling homebuyers to circumvent common obstacles to homeownership, such as a lack of traditional credit or cash for a down payment.” One mortgage program, called Settle America, takes into consideration the lifestyles and financial habits of large immigrant groups in the United States. Rather than relying on traditional credit lines, such as student or car loans and credit card bills, the lender looks at an applicant’s employment status, and will consider the homebuyer’s utility and rent payment history, over the previous 12 months. The program also allows up to 30 percent of a borrower's qualifying income to be contributed by other members of the household. In addition, it allows for a low minimum down payment, which People moving to the United States make up a significant percentage of new home owners. can come from a combination of the borrower’s own funds saved in an American bank account or from gifts, non-profit grant programs, or an unsecured loan. GMAC Mortgage, in conjunction with Freddie Mac, requires that applicants for the Settle America program complete an informative home financing seminarprior to closing on their loan. Another mortgage product, called HomeStrength, is aimed at middle-income borrowers in good credit standing who lack the cash savings for a down payment. It helps the borrower cover the down payment and closing costs through features including a forgivable second loan for four percent of the loan value. GMAC Mortgage is an Equal Opportunity Lender. To learn more, call toll free 1800-888-4622 or visit the Web site at www.gmacmortgage.com.
