Nothing-down loans offered by RylandRyland Mortgage Co. is...

INDUSTRY WATCH

September 25, 1994

Nothing-down loans offered by Ryland

Ryland Mortgage Co. is offering a no-down-payment loan program for buyers of Ryland homes.

Ryland Mortgage -- which said it is concentrating on promoting the sale of Ryland homes, not just originating loans for any homebuyer -- hopes to attract those with high income but little money in the bank.

"This is trying to help that population, the folks out there who want to buy a home but don't have the cash," said Kristyn Stout, a Ryland Mortgage spokeswoman.

Ryland Mortgage will offer a 95 percent loan -- a one-year adjustable-rate mortgage, with a current rate of 7.875 percent with 3 points. The company will also give the buyer an interest-free second mortgage for the remaining 5 percent. If the borrower makes monthly payments for three years, Ryland will forgive the second mortgage -- in effect, giving the buyer about $9,000 on a $200,000 home.

The ARM comes with standard rate caps -- 2 percent per year, 6 percent for life of the loan.

The program, which started last week, is open to any buyer of a Ryland home; there is no income requirement, nor is the program restricted to first-time buyers.

Ryland Mortgage admits that the rate is not the best -- "obviously, we're not selling rate," Ms. Stout said. Last week, for example, rates for 30-year loans with 3 points were about 8.125 percent, only slightly more than Ryland's adjustable rate.

But Ms. Stout said the purpose of the program was to make homeownership more affordable, "to reach out to a different segment of the market."

Auction to benefit Gaddy organization

Patterson Park Emergency Food Center will auction four properties to raise funds for the nonprofit organization run by Baltimore's Bea Gaddy.

The auction is being held free by Century 21 Horizon Realty Inc. tTC and auctioneer James J. Butler Sr. It will begin at 11 a.m. tomorrow at 3003 Westwood Ave. and move to 1608 Edmondson Ave. at 11:30 a.m. A two-unit apartment house at 1930 McHenry St. will be sold at noon, followed by a lot at 2117 E. Jefferson St. at 12:30 p.m.

Buyers must make a $2,000 deposit with cash or a cashier's or certified check. Settlement will occur within 45 days. There are -- no buyer's premiums. Information: 254-8800.

NEWS IN BRIEF

* MNC Mortgage Corp. is the new name for Maryland National Mortgage Corp, which was founded in 1979. The name change results from the firm's purchase by First Tennessee Bank National Assoc. in October 1993.

MNC services more than $3.5 billion in single-family loans and $740 million in multifamily loans through 29 offices in Maryland, Colorado, Delaware, New Jersey, Pennsylvania, Virginia, Arizona and North Carolina. The name change will not affect the six offices of Atlantic Coast Mortgage, an MNC subsidiary.

* O'Conor, Piper & Flynn, Realtors said Lynn Patrick, a salesperson in its Bel Air/Fallston office, has been elected secretary of the Harford Leadership Association, a group of community leaders who work to improve the political, economic and social conditions in Harford County.

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