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FIRST SECURITY SAVINGS BANK OFFERS FIRST ZERO DOWN PAYMENT MORTGAGE IN MIDWEST

 BLOOMFIELD HILLS, Mich., Nov. 23 ~PRNewswire~ -- In keeping with its national reputation as a leader in providing innovative mortgage products, First Security Savings Bank now is offering a fixed-rate conventional mortgage with no down payment, the first such program in the Midwest and one of the first of its kind in the country.
 Home buyers who qualify can obtain a mortgage equal to the full purchase price of the property with the assistance of a qualifying pledger who provides a guarantee for a down payment.
 The qualifying pledger, who must be a parent, brother, sister or grandparent, can provide the guarantee in the form of an interest- bearing Certificate of Deposit held by First Security Savings Bank. The amount of the guarantee must equal 30 percent of the sales price.
 The Zero Down Payment Mortgage requires no mortgage insurance. The program utilizes standard interest rates and closing costs, and there are no premiums or additional costs.
 "Too often in our society, people must save a long time to have enough money to buy a home," Mark Hammond, executive vice president of the bank, said. "During this period of years necessary to save enough money, home prices continue to escalate. This program will help many home buyers realize the dream of home ownership much, much sooner.
 "Unlike any number of other mortgage products available today that simply are different alternatives for existing customers, our Zero Down Payment Mortgage actually helps new home buyers," he added.
 In the Zero Down Payment Mortgage, the guaranteeing CD is not a loan or gift, but remains in the pledger's name as a guarantee for performance of the mortgage. It is automatically renewable during the term of the pledge, and will carry the standard interest rate offered by First Security. The relative pledger retains ownership of the CD, avoids inheritance gift taxes necessary with gifts in excess of $10,000, and receives interest payment at each maturity, providing the mortgage is paid current.
 The Zero Down Payment Mortgage is not a co-signed loan. The borrower must qualify at the sales price, and signs all mortgage documents independently of the pledger. The mortgage must be a 10-, 15-, 20- or 30-year fixed-rate conventional loan.
 The property must be a single-family, detached, owner-occupied primary residence with a loan amount not exceeding $202,300. The purpose of the loan must be to purchase a home, not to refinance. The borrowers must establish a regular tax and insurance account and pay their own closing costs which must be a minimum 3-percent investment.
 The security interest in the CD will be released under certain circumstances, including the unpaid balance's falling below 75 percent of the original principal balance; or after seven years, providing the loan-to-value ratio of the mortgaged property is 70 percent or less, based on an updated appraisal.
 "The Zero Down Payment Mortgage is the latest of our programs to help first-time home buyers," Hammond stressed. "We believe this is one of the most innovative mortgage loan programs in years. Thousands of people who do not have savings but have relatives who believe in them, can now buy a home at market interest rates.
 "They can enjoy home ownership years in advance. Even a home buyer with enough money or equity in a present home to purchase with 10 percent down, can pool money with a qualifying relative for a 30-percent guarantee and waive expensive mortgage insurance. Every Realtor we have discussed this program with believes it is sensational and will promote additional real estate sales."
 First Security Savings Bank, an FDIC-insured bank, is one of the Midwest's largest originators of residential mortgage loans. It operates 13 offices in Michigan (Allen Park, Ann Arbor, Bloomfield Hills, Farmington Hills, Grand Blanc, Grand Rapids, Holland, Lansing, Lapeer, Livonia, Mount Clemens, Plymouth and Saginaw), seven in Ohio (Bucyrus, Cincinnati, Cleveland, Columbus, Findlay, Mansfield and Maumee); and one each in Virginia, Texas and Illinois.
 -0- 11~23~92
 ~CONTACT: Mark T. Hammond of First Security Savings Bank, 313-352-7700; or Fred Zosel of Frederick R. Zosel & Associates, 313-343-0203, for First Security Savings Bank~


CO: First Security Savings Bank ST: Michigan IN: FIN SU: PDT

DH -- DE014 -- 0462 11~23~92 11:25 EST
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Date:Nov 23, 1992
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