$48 Million Lease-Purchase Homeownership Program Launched With National, State, Local Leaders, and Lenders.Business Editors OAKLAND, Calif.--(BUSINESS WIRE)--June 27, 2003 ABAG ABAG Association of Bay Area Governments ABAG Associação Brasileira de Aviação Geral (Brazilian Association of General Aviation; São Paulo, Brazil) ABAG Antigua & Barbuda Association of Georgia Finance Authority for Nonprofit Corporations Announces Program During National Homeownership Month at Oakland City Hall Plaza The ABAG Finance Authority for Nonprofit Corporations announced today the launching of California Home Source, a new lease-purchase home ownership program. This landmark $48 million initiative will enable hundreds of San Francisco Bay Area “Bay Area” redirects here. For other uses, see Bay Area (disambiguation). The San Francisco Bay Area, colloquially known as the Bay Area or The Bay families to achieve home ownership without having to make a down payment or pay closing costs Closing Costs The numerous expenses (over and above the price of the property) that buyers and sellers normally incur to complete a real estate transaction. Costs incurred include loan origination fee, discount points, appraisal fee, title search, title insurance, survey, taxes, . The program is being officially unveiled during National Homeownership Month by the Association of Bay Area Governments The Association of Bay Area Governments (ABAG) is a regional planning agency incorporating various local governments in the San Francisco Bay Area in California. It deals with land use, housing, environmental quality, and economic development. (ABAG) and the ABAG Finance Authority for Nonprofit Corporations, the California Housing Finance Agency (CalFHA), Citimortgage, and Freddie Mac Freddie Mac: see Federal Home Loan Mortgage Corporation. . A press conference and reception is scheduled today at Oakland City Hall Plaza from 10 a.m. to 11:30 a.m., to announce the program. California Home Source allows qualified residents to choose a home, lease it from a new non-profit entity created by the ABAG Finance Authority for Nonprofit Corporations, then purchase the home and assume the mortgage at the end of the lease term. California Home Source is designed to provide homeownership opportunities for those who have been denied homeownership because of credit difficulties, a lack of credit history, a lack of savings for a down payment, or a combination of these issues. "During this critical time of limited state and local budgets and restricted funding sources, we are excited about addressing the housing need and opening access to home ownership in the Bay Area," stated Tom Ford, Chair of the ABAG Finance Authority for Nonprofit Corporations and Sonoma County Treasurer. The California Home Source Lease-Purchase Program is available in Alameda, Contra Costa Contra Costa can refer to:
"The California Housing Finance Agency is pleased to partner with ABAG and provide the financial resources to support this innovative homeownership assistance program," said Theresa Parker, CalHFA Executive Director. "Nothing compares to the sensation of walking into a home for the first time and knowing that it's yours. California Home Source is unique because it will put homeownership opportunities within reach of hundreds of Bay Area residents unable to qualify for a traditional mortgage," said Craig Nickerson, Vice President Community Development and Lending. "We are proud to join CalHFA, and the ABAG Finance Authority to make homeownership more accessible to many hard working Californians." For more information, consumers interested in the Lease-Purchase Program can visit the program Web site at www.calhomesource.org, or contact the program at 800/807-8277. Media inquiries should be directed to Loren Gonzalez, for ABAG Finance Authority for Nonprofit Corporations, 818/509-1507 or loren@monarchagency.com, or Brad German, Freddie Mac, 703/903-2437. ABAG Finance Authority for Nonprofit Corporations provides conduit financing Conduit Financing A financing arrangement involving a government or other qualified agency using its name in an issuance of fixed income securities for a non-profit organization's large capital project. to nonprofit organizations and other borrowers serving the public in the areas of health and social services, affordable housing, and education. It is one of the Financial Services programs offered by the Association of Bay Area Governments (ABAG) that provide economical conduit financing to fund a variety of projects with demonstrated public benefit. Freddie Mac is a stockholder-owned corporation chartered by Congress in 1970 to create a continuous flow of funds Flow of funds In the context of municipal bonds, refers to the statement displaying the priorities by which municipal revenue will be applied to the debt. In the context of mutual funds, refers to the movement of money into or out of a mutual funds or between or among to mortgage lenders. By supplying lenders with the money to make mortgages and packaging the mortgages into marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has , Freddie Mac sustains a stable mortgage credit system and reduces the mortgage rates paid by homebuyers. Over the years, Freddie Mac has opened the doors for one in six homebuyers in America and two million renters. (More information on Freddie Mac can be found on the company's web site located at www.freddiemac.com.) |
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