Fannie Mae Announces $500,000 in New Down Payment and Closing Cost Assistance Funds to Help Low- and Moderate-Income Arizona Residents.
PHOENIX--(BUSINESS WIRE)--Oct. 5, 1998--More than 100 low- and moderate-income mod·er·ate-in·come
Of or relating to people or households supported by an average or slightly below average income: moderate-income housing. families in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). will now have access to a new source of down payment and closing cost assistance funds thanks to a new partnership announced today between the Industrial Development Authority (IDA Ida (ē`dä), city (1990 pop. 91,859), Nagano prefecture, central Honshu, Japan, on the Tenryu River. It is an agricultural market and railway junction. ) of the City of Phoenix and Fannie Mae Fannie Mae: see Federal National Mortgage Association. , (FNM/NYSE), the nation's largest source of home mortgage funds.
Fannie Mae's Down Payment Assistance Investment Note (DPAIN) will provide $500,000 in new funds to be made available as loans to Arizona home buyers through the Phoenix IDA.
The Phoenix IDA uses the DPAIN proceeds to fund secured second mortgage loans that finance part of a borrower's down payment or 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, .
Borrowers can use the funds for the down payment, closing costs, appraisal fees, home inspections, and legal fees.
Loan applicants must first be approved under the Phoenix IDA's new Mortgage Credit Certificate Program, which reduces the amount of a borrower's federal income tax liability, making more income available for borrowers to qualify for a mortgage loan.
The maximum annual income for families to be eligible for assistance ranges from $48,300 for a single-person household to $57,000 for a household of four. The maximum purchase price for a home is $179,934.
Additionally, loans made under the IDA's program can be used in conjunction with Fannie Mae's Flexible 97, a new mortgage for borrowers with very good credit and the ability to make mortgage payments, but who lack down payment funds. These loans also may be used in conjunction with Fannie Mae's Community Lending products.
"Cash for down payments is the number one obstacle for most low- and moderate-income families," said Russ n. sing. & 1. A Russian, or the Russians.
2. The language of the Russians.
a. 1. Of or pertaining to the Russians. Kolsrud, president of the Phoenix IDA. "This unique transaction with Fannie Mae allowed us to help more families overcome that obstacle and make the dream of homeownership a reality."
"Families looking to buy their first home too often get shut out of the home-buying process because of unanticipated costs," said Phoenix Mayor Skip Rimsza. "The new down payment assistance loan will give Arizona home buyers the extra cash they need to close the deal. My thanks to Fannie Mae and the Phoenix IDA for making the DPAIN a reality for our city."
For decades, public agencies such as Housing Finance Agencies (HFAs) have funded down payment and closing cost assistance programs using their own resources, such as federal block grants, state, and/or and/or
Used to indicate that either or both of the items connected by it are involved.
Usage Note: And/or is widely used in legal and business writing. local funds.
Federal programs like HOME, however, are stretched to capacity in many states. Alternative financing structures from the private sector, such as Fannie Mae's DPAIN, will help public agencies leverage these scarce resources and redirect re·di·rect
tr.v. re·di·rect·ed, re·di·rect·ing, re·di·rects
To change the direction or course of.
A redirect examination.
re funds that currently are used for home- buying assistance for other uses.
"Fannie Mae is committed to increasing homeownership opportunities throughout Arizona," said Elisa de la Vara, director of the Fannie Mae Phoenix Partnership Office. "Down payment and closing cost assistance loans to families trying to buy their first home can be the key to them becoming homeowners."
Fannie Mae closed its first down payment assistance transaction with the Washington State Housing Finance Commission in December 1996.
Since then, Fannie Mae has piloted its Down Payment Assistance Investment Note on a limited basis, purchasing eight taxable down payment assistance notes from HFAs in 1997.
The eight transactions provided $4.4 million in financing to help approximately 1,500 families purchase their first homes. The overwhelming success of the experiment led to its nationwide expansion. Today's partnership agreement marks the first DPAIN program for the city of Phoenix.
For more information about the down payment assistance loan, please contact Joann Hauger at Community Housing Resources of Arizona at 602/631-9780.
Fannie Mae is a congressionally chartered, shareholder-owned company and the nation's largest source of funds for home mortgages. It has committed to provide $1 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.
(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.
In the USA and Canada, 10^12. in targeted lending for ten million homes by the end of the decade.
The targeted lending will serve low- and moderate-income families, minorities, new immigrants, residents of central cities and other underserved areas, and people who have special housing needs.
Over the past 30 years, Fannie Mae has provided $2.5 trillion in mortgage financing for 31 million families. More information about Fannie Mae can be found on the Internet Internet
Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.fanniemae.com.
Style Usage: Fannie Mae's Board of Directors has authorized au·thor·ize
tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es
1. To grant authority or power to.
2. To give permission for; sanction: the company to operate as "Fannie Mae," and the company's stock is now listed on the NYSE NYSE
See: New York Stock Exchange as "Fannie Mae." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."