COUNTRYWIDE, GE CAPITAL ANNOUNCE REALTOR, BUYER INCENTIVES TO
ENCOURAGE COMMUNITY HOME BUYER'S LOAN PARTICIPATION
LAS VEGAS, Nov. 10 /PRNewswire/ -- Countrywide Funding Corp. and GE Capital Mortgage Insurance Corp. announced today incentives designed to encourage local board of Realtors and low-and moderate- income families to participate in the Community Home Buyer's program.
Announced at the National Association of Realtors convention, Countrywide will donate $50,000 (or $1,000 a piece) to assist the first 50 Realtor boards that schedule a home buyer education program with a certified Countrywide teacher using GE Capital educational materials. In addition, borrowers who apply for the Community Home Buyer's program through one of Countrywide's 95 retail branches before March 31, 1992, will have their appraisal fees absorbed through Countywide and half their home inspection fee, up to $100, paid for by GE Capital.
Countrywide, the nation's largest independent mortgage banker, is the first lender to offer the Community Home Buyer's program nationwide with GE Capital, and anticipates generating at least $25 million in mortgage business under the loan program offered by Fannie Mae.
"Countrywide is committed to helping Realtors get home buyers, especially first-time buyers, into a home. We feel the Community Home Buyer's program can turn apartment dwellers into home owners," said Gregory A. Lumsden, executive vice president, Retail Branch Division, Countrywide Funding Corp. "Working in partnership with GE, we aim to make the American dream of home ownership a reality."
The Community Home Buyer's program is an educational curriculum developed by GE Capital to help home buyers comply with the buyer education requirement of the Fannie Mae 95-3/2 loan option. Requiring only a five percent down payment, the Fannie Mae loan allows a buyer to contribute three percent of his own funds, while the other two percent of the down payment can be a gift, loan from a relative, or grant from a government agency or non-profit organization. To qualify for the loan, the family can earn no more than 115 percent of the median income for the area in which they live. The maximum income is $51,240 in a high income area, which can qualify the borrower for a loan of approximately $150,000. Specific details on the loan program may be obtained through the Fannie Mae.
In addition, the loan program requires qualified buyers to complete a one-time, four-hour buyer education course, covering all aspects of the loan, as well as budgeting and home maintenance information. Home buyers who are not in an area that offers a Countywide designated course, may call Countrywide's Consumer Division at 800-669-6659 for information on completing the course at home.
"We are very happy to announce our partnership with Countrywide Funding Corp.," said John C. Burns, regional vice president, GE Capital Mortgage Corp. "We anticipate tremendous success in providing first-time home buyers with the borrower education that is essential to successful home ownership. Partnerships like this help GE Capital achieve its goal of helping families get into homes they can afford to stay in."
Countrywide Funding Corp. originates and services single-family loans up to $1 million locally in more than 120 retail and wholesale branches nationwide. Founded in 1969, the financial services holding company, Countrywide Credit Industries, Inc. (NYSE: CCR) is headquartered in Pasadena, Calif.
GE Capital Mortgage Insurance Corp. is a network of affiliated real estate finance businesses based in Raleigh, North Carolina. It parent company, GE Capital, is based in Stamford, Connecticut.
For more information on the Community Home buyer's program, contact a local Countrywide branch, or to find the closest branch, call 800-669-6606.
/CONTACT: Laura Lippman of Countrywide, 800-669-6655, ext. 4422 or Jeannette Bernay of GE Capital, 800-334-9270/ CO: Countrywide, GE Capital ST: Nevada IN: SU: EH-SE -- LA001 -- 2832 11/10/91 13:00 EST