3% down payment program is offered by mortgage firm

Real Estate Watch

November 03, 1996

First National Mortgage Corp., an affiliate of First Maryland Bancorp, and PMI Mortgage Insurance Co. have launched a $10 million affordable-housing program to help residents of Baltimore, Prince George's County, the District of Columbia and York, Pa., obtain mortgages with a low down payment.

Under what it has named the "97% Solution" program, First National will finance 97 percent of the purchase price of a home.

Borrowers are required to make a 2 percent down payment from their own funds.

The remaining 1 percent down and all closing costs and prepaid items can be borrowed from First National Mortgage through an unsecured loan with a term of up to 10 years and an interest rate equal to that of the first mortgage.

Borrowers have the option of obtaining the final 1 percent down payment through gifts from relatives or an unsecured loan from a nonprofit group or public agency.

Qualified buyers can earn up to 100 percent of their area's median income.

PMI, which has headquarters in San Francisco, will insure all loans originated through the program.

Prospective borrowers must attend homeownership classes, which are available through local homeownership counseling organizations.

"Development of this type of innovative loan program is why First National Mortgage is consistently one of the top lenders in Baltimore City," FNMC President Robert P. O'Hara said.

For more information, call First National Mortgage at (800) 541-1371.

Pub Date: 11/03/96

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