GMAC Mortgage Plan Aims To Make Housing Accessible To More
Americans
FOR RELEASE: October 22, 2002
GMAC Mortgage Announces The HomeStretchtm Plan To Eliminate Down Payment As An Obstacle To Home Ownership
Plan Aims To Make Housing Accessible To More Americans
HORSHAM, Pennsylvania, - GMAC Mortgage has announced the broad availability of the HomeStretchtm plan, a unique mortgage financing option that speeds the acquisition of a home for qualified consumers.
HomeStretchtm removes the greatest obstacle to home ownership - the onerous down payment, closing, and other upfront costs associated with buying a home. The HomeStretch(tm) plan thereby allows consumers to purchase a home and begin building equity before they have accumulated the savings necessary for down payment and closing costs. It also allows the homebuyer to immediately improve the home by dedicating existing savings to material improvements that enhance the ownership experience.
HomeStretchtm is a Federal Housing Authority (FHA) fixed-rate first mortgage for any homebuyer who lacks the cash savings necessary to make a down payment. If such a homebuyer qualifies for an FHA insured loan, the buyer can receive a HomeStretch loan for an additional 4% of the mortgage, thereby covering the traditional down payment and closing costs. If the consumer stays in the home for ten years, the HomeStretch(tm) loan is forgiven.
The HomeStretchtm plan helps people get into a home faster than they thought possible. The down payment assistance and top-quality service features of the program can dramatically accelerate the acquisition of a home. It allows consumers to take advantage of current, low interest rates by providing the essential funding for up-front costs that have been driven skyward by rising home values.
"We are very excited to offer the HomeStretchtm plan as a solution for many Americans who want to purchase a home but may feel intimidated by high down payment requirements," remarked Ralph Hall, Chief Operating Officer of GMAC Mortgage. He added, "This is the first national mortgage program of its kind, and we are very proud to say that it has already helped many Americans into their first homes. This program has broad appeal, and we look forward to its continued success."
Arlene Waynes of Valley Green Realty in Philadelphia, PA, observed, "I am delighted by the speed with which I can put folks into their own homes with the HomeStretchtm plan. Its accessibility has helped me connect a broader range of potential buyers with the sellers of my listed properties."
Program Requirements To be eligible for the HomeStretchtm plan, properties must be FHA-approved residential one- to four-unit dwellings, condos, planned unit developments, manufactured housing or mobile home, or modular pre-cut or panelized housing.
In most areas, homebuyers with a household income up to 150% of the area median can take advantage of the HomeStretchtm plan. (Household income cannot exceed 150% of area media income, 165% in New York City, and 170% in Hawaii.) Household income is defined as the total income of all people 18 years or older who will occupy the subject property.
The homebuyer must meet FHA underwriting guidelines for a 30-year term first mortgage, which is fully amortized. First mortgage loan-to-value ratios must follow HUD guidelines.
The HomeStretchtm plan loan is zero interest, no payment and fully forgivable after 10 years occupancy in the home. It allows 4% of the first mortgage amount to cover the down payment, closing costs or pre-paid items (Some state restrictions or exclusions may apply.) The HomeStretchtm plan loan is subject to repayment if the borrower sells the property and a qualified buyer does not assume the loan or if the borrower voluntarily refinances.
GMAC Mortgage's HomeStretchtm plan is available nationwide.
About GMAC Mortgage GMAC Mortgage Corporation is among the nation's top ten residential mortgage servicers and originators. The company originates first and second lien residential mortgage loans through a nationwide network of retail offices, direct lending centers, correspondents and internet sites under the brands www.gmacmortage.com and ditech.com. GMAC Mortgage also offers custom mortgage services to GM employees and their family members, retirees and dealers through its GM Family First program. As of December 31, 2001, GMAC Mortgage originated $52 billion residential mortgages, representing more than 437,000 transactions. The company's servicing portfolio of more than $185 billion represents 2 million customers throughout the nation. The company's headquarters is located in Horsham, Pennsylvania.
