Continental Savings Bank Selected for Fannie Mae Pilot Program; Fannie Mae All-in-One Construction Loan.

SEATTLE--(BUSINESS WIRE)--Nov. 23, 1998--Uncertainties about building a home and how to finance it are being eased by a new loan program available to consumers in the Northwest.

Continental Savings Bank is now one of only five lenders in the country to offer a Fannie Mae loan program designed specifically for those planning on building the home of their dreams. The All-in-One Construction loan is a construction loan that rolls into a permanent mortgage, enabling the borrower to do a custom construction project all with one loan.

Fannie Mae launched this pilot program by selecting only five lenders in the United States to offer the Construction-to-Perm, or All-in-One Construction loan. Now, consumers who qualify can take advantage of the many benefits this program offers, including cost savings with competitive interest rates.

In addition to the cost savings, the All-in-One loan program allows the homeowner to lock-in a long-term interest rate and take advantage of today's favorable interest rate environment, according to Rich Bennion, Continental executive vice president of residential lending. "A typical home construction loan requires the mortgage interest rate to be set after construction is completed," said Bennion. "With this program, the homeowner can take advantage of current low rates, and tie in a rate for the construction project and the permanent mortgage at the same time."

Continental's Fannie Mae All-in-One program saves time by eliminating the need to go through the lending process twice, and saves money because interest is paid only on the amount disbursed during the construction period. Other key benefits are protection against fluctuating interest rates by locking-in prior to the construction phase on loan amounts of up to $227,150 and 90 percent of the finished value. The program also allows up to 11 months to complete the construction.

"We are very excited about bringing this product to our customers in the Northwest," said Jeff Todhunter, production manager of residential construction. "It's another outstanding loan program meeting the needs of this market, which is unavailable through most other lenders. The very competitive rates offered by Continental through this program make it a great time to build that dream home."

Continental Savings Bank has more than $1 billion in assets and has been meeting customers' needs in the Pacific Northwest since 1921. With 23 branches in four states, Continental offers diversified financial services, focusing primarily on mortgages for home owners and buyers, deposit services for bank customers and income property financing for real estate investors. Visit Continental's web site at www.continentalsavings.com.