Budget-household mortgages offered by First UnionFirst...

Industry Digest

July 28, 1996

Budget-household mortgages offered by First Union

First Union Corp., the Charlotte, N.C.-based banking company, introduced the Neighborhood Development Mortgage and the Community Partnership Mortgage last week to increase homeownership among low- and moderate-income families.

The new Neighborhood Development Mortgage features interest rates 1 percentage point lower than the conventional rate, repayment periods ranging from 10 years to 30 years, 5 percent down payments and loans of up to 95 percent of a home's value with no minimum or maximum amount. Houses must be located in low- or moderate-income areas.

First Union's Community Partnership Mortgage includes loans of up to 100 percent of a home's value, no down payment with only $500 needed for closing and a waiver of the mortgage insurance requirement. Borrowers must work with a local nonprofit community organization to gain an understanding of the home-buying process and financial planning.

First Union has 54 branches in Maryland.

Reverse mortgage legislation offered

Reverse mortgages could become a permanent fixture on the housing scene if Congress passes legislation proposed by the Department of Housing and Urban Development.

The legislation would permit the Federal Housing Administration's reverse mortgage program to continue beyond its scheduled expiration in 2000. In addition, the bill would no longer limit HUD to insuring 50,000 reverse mortgages.

Reverse mortgages allow homeowners 62 or older to borrow against the value of their home. Borrowers receive payments from a lender on a monthly basis, in a lump sum or as a line of credit. The loan plus interest is repaid when the home is sold.

The FHA insures loans made by private lenders.

News in Brief

Bozzuto Management Co. of Greenbelt, part of the Bozzuto Group, has been selected by USF&G of Baltimore to manage Woodlawn Gable, a 248-unit luxury apartment community in Alexandria, Va.

Century 21 Anthony-Gavern Realtors said Elizabeth Anthony was its top producer in June with $850,000 in house sales.

Comprehensive Housing Assistance Inc., the neighborhood and housing development agency of The Associated: Jewish Community Federation, of Baltimore, recently elected Robert G. Pollokoff president. Other new officers are Lowell G. Herman, first vice president; Wendy M. Jachman, vice president; Larry M. Wolf, vice president; David H. Brooks, treasurer; and Stuart J. Macklin, secretary. Outgoing President Jerome A. Gross, a board member for 12 years, was honored at the annual meeting.

Harkins Builders Inc. of Silver Spring is the fifth largest builder of multifamily housing units for rent or sale, according to the National Association of Home Builders. Harkins recently began work at the Benning Road Apartments in Washington, where 92 two-bedroom apartments will be converted to six four-bedroom and 80 two-bedroom units. The development's underground heating and water distribution system will also be replaced.

Pond Point Mortgage Co., a member of the Bozzuto Group, appointed Eileen Zadareky vice president of the Greenbelt-based firm. Zadareky formerly was a vice president and branch manager with 1st Washington Mortgage Corp. She is a graduate of Douglass College at Rutgers University.

Pub Date: 7/28/96

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