U.S. Representative Luis V. Gutierrez Joins Guaranty Bank and Fannie Mae to Announce 'Buy for Family' Mortgage; Qualified Borrower Can Finance the Purchase of a Residence for a Parent or Sibling Who is Unable to Purchase for Themselves
CHICAGO, Sept. 1 /PRNewswire/ -- U.S. Representative Luis V. Gutierrez (D- IL) today joined local community leaders, housing advocates, and representatives from nonprofit organizations, Guaranty Bank, and Fannie Mae (NYSE:FNM) , the nation's largest source of financing for home mortgages, to announce a new mortgage designed to help increase affordable homeownership opportunities for underserved markets, including low- and moderate-income immigrant and minority families. "Buy for Family," a new mortgage designed by Guaranty Bank, allows a qualified borrower to finance the purchase of a residence for his or her parents or a sibling if they are unable to buy a home for themselves. Guaranty Bank will originate the Buy for Family loans, and Fannie Mae will purchase the eligible loans.
"The power of homeownership is a central wealth building tool and an essential vehicle for long term financial security and stability," said Rep. Gutierrez. "And that is why Buy For Family is so important, because it will help tear down barriers that currently prevent homeownership and it will provide opportunities and options for first-time home buyers, especially in minority and immigrant communities."
"America was built on the backbone of new immigrants who arrived in this country trying to make a better life for their families," said Chicago Housing Commissioner John G. Markowski. "Buy for Family is a great solution for immigrants to buy their piece of the American dream. When we have a gap in the homeownership rate, that's a gap in access to wealth."
Buy for Family is a flexible, affordable mortgage that helps qualified buyers, such as the first generation children of immigrants, purchase a home for their parents or siblings, who may not have traditional forms of credit or use mainstream banking and are, therefore, unable to qualify to buy the home themselves. Buy for Family offers borrowers the opportunity to finance a parent or sibling's home through several key features.
Borrowers contribute at least $500 down from either their own funds, with the remainder coming from a gift from their family member or grants from a church, employer, municipality or nonprofit agency. In addition to the flexible down payment sources, additional funds may be obtained from cash on hand or money not traditionally placed in a financial institution. To be eligible for the Buy for Family product, the home must be located in Chicago, Atlanta, Detroit, and the State of Wisconsin.
Buy for Family is intended to help boost homeownership rates, which have been on the rise recently. According to the National Association of REALTORS(R), the homeownership rate for African American households in the first quarter of 2004 was 49.3 percent, up from 47.7 percent in the first quarter of 2003, while the homeownership rate for Hispanic households was 47.3 percent, up from 46.7 percent a year earlier. In addition, the homeownership rate for Asians, Native Americans, and Pacific Islanders was 58.2 percent, up from 55.7 percent in the first quarter of 2003. The homeownership rate for non-Hispanic whites was 75.5, up from 75.0 percent a year earlier.
"These are very needed programs that we bring to the table. Buy for Family will enable many minority and immigrant families to realize the American dream of homeownership, by reducing some of the barriers they presently face," said Guaranty Bank's Executive Chairman Gerald Levy. "Guaranty Bank is thrilled to partner with Fannie Mae and further demonstrate our commitment to the communities we serve by offering more diverse and creative programs and opportunities to the residents of the communities we serve."
The Buy for Family mortgage is offered by Guaranty Bank as part of its recently announced five-year, $2 billion multicultural lending initiative with Fannie Mae that is designed to increase affordable homeownership opportunities for underserved markets, including immigrant and minority families.
As part of this initiative, Guaranty Bank and its subsidiaries, Guaranty Mortgage, Shelter Mortgage Company, and GN Mortgage, will offer new or enhanced mortgage products that utilize options for helping people overcome barriers such as blemished credit or lack of a down payment. Fannie Mae has committed to purchase from Guaranty Bank $2 billion in eligible loans originated under this initiative.
"Fannie Mae is committed to bringing more initiatives to the marketplace that provide solutions to one of America's most pressing housing needs," said Terry Young, director of Fannie Mae's Illinois Partnership Office. "With Guaranty Bank, we are excited about Buy for Family, and how it recognizes the need for more affordable housing in underserved markets, including immigrant and minority families.
This effort is part of Fannie Mae's American Dream Commitment(R) for Illinois, a new seven-year, $135 billion Illinois housing investment plan to help finance affordable housing for 900,000 families across the state.
For information about the Buy for Family mortgage, the multicultural homeownership initiative, to apply for a loan, or learn more about loan opportunities, contact Guaranty Bank at 1-847-439-5626.
For more information on Fannie Mae's affordable mortgage products, consumers may call Fannie Mae's Consumer Resource Center at 1-800-7FANNIE (1-800-732-6643), Monday through Friday, 8:00 a.m. to 4:00 p.m. CDT.
Guaranty Bank is a Federal savings bank headquartered in Milwaukee, Wisconsin. Guaranty Bank has more than 117 retail locations throughout southeast Wisconsin, northern Illinois, southeast Michigan and Minnesota. Guaranty Bank's subsidiaries and d/b/a's include: Guaranty Mortgage, GB Home Equity, GN Mortgage, Shelter Mortgage, and BestBank (in Southeast Michigan). At the end of June 2004, Guaranty Bank's assets totaled $1.89 billion. Guaranty Bank is owned by Guaranty Financial Corp. The stock symbol of Guaranty Financial Corp. is "GFCJ."
Founded in 1923, Guaranty Bank has established a strong presence as a well-known community bank. As a subsidiary of Guaranty Bank, Shelter Mortgage's nationwide offices specialize in its own niche of mortgage lending. With more than 300 loan programs available, borrowers are placed with the best-suited mortgage fitting their needs. Personalized customer service is one reason why Guaranty Bank is one of the top 50 lenders in America. For more information visit http://www.shelter-mortgage.com/
Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation's largest source of financing for home mortgages. Fannie Mae has pledged through its "American Dream Commitment" to expand access to homeownership for millions of first-time home buyers; help raise the minority homeownership rate to 55 percent; make homeownership and rental housing a success for millions of families at risk of losing their homes; and expand the supply of affordable housing where it is needed most. Since 1968, Fannie Mae has provided $6.3 trillion of mortgage financing for 63 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com/.
Style Usage: Fannie Mae's Board of Directors has authorized the company to operate as "Fannie Mae," and the company's stock is now listed on the NYSE as "FNM." In order to facilitate clarity and avoid confusion, news organizations are asked to refer to the company exclusively as "Fannie Mae."
Source: Fannie Mae; Guaranty Bank
Web site: http://www.fanniemae.com/