American City Mortgage Offers Nehemiah Loan Program.LOS LOS Length of stay, see there ANGELES--(BUSINESS WIRE)--June 16, 1998-- Borrowers can purchase home with only one percent down American City Mortgage, a Carson, Calif.-based mortgage lender specializing in minority and low-income lending, announced today that it is an approved lender to provide loans in association with the Nehemiah Progressive Housing Department. Nehemiah is a not-for-profit organization based in Sacramento, Calif. helping consumers who have previously been denied a mortgage, become homeowners. Under the Nehemiah Program, borrowers apply through American City Mortgage for a FHA loan FHA loan is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration. The loan may be issued by federally qualified lenders. with a maximum loan-to-value ratio Loan-to-value ratio (LTV) The ratio of money borrowed on a property to the property's fair market value. of 94 percent, with the borrower contributing a minimum of one percent of the home's value to the 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, and down payment. The remaining five percent of funding is contributed by the sellers through the Nehemiah Progressive Housing Department in the form of a tax-deductible gift. Sellers make a tax-deductible donation of six percent of the home's value to the Nehemiah Progressive Housing Department. The Department keeps one percent (of the home's value) to cover its operational costs and donates the other five percent to the borrower in the form of a gift to cover funding of the remaining closing costs and down payment. "By offering the Nehemiah Program loans, American City has been able to help more consumers become homeowners," said Pat Theodora Sr., American City Mortgage's chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The biggest hurdle for many people is saving enough money to make a down payment of five to ten percent, and this program has eliminated that prerequisite pre·req·ui·site adj. Required or necessary as a prior condition: Competence is prerequisite to promotion. n. for otherwise qualified borrowers by requiring only one percent down." Nehemiah Program loans are available through all American City All American City can refer to:
FHA See Federal Housing Administration (FHA). requirements. About American City Mortgage Founded in 1983 by Pat Theodora Sr. and his son, Pat Theodora Jr., American City Mortgage Corp. is a single-source, comprehensive provider of mortgage products and services with a strong emphasis on government and agency loans. The mortgage company originates, processes, purchases, places and services loans from application through the life of the loan. American City has a staff of 185 at its 14 satellite offices throughout California and its headquarters in Carson. For more information, write American City Mortgage, 20501 S. Avalon Blvd., Carson, CA 90746; or call Pat Theodora Sr. or Pat Theodora Jr. at (800) 366-2262, or visit the company's Web site at www.americancitymortgage.com.
CONTACT: American City Mortgage
Pat Theodora Sr., 800/366-2262
or
for American City Mortgage
Beth Quinlan, 404/264-7207
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