HomeSteps aims to save in closing costs, mortgage

Real Estate Watch

January 25, 1998

Freddie Mac, a stock-holder-owned corporation created by Congress, has launched a program that could save homebuyers hundreds of dollars on their mortgage and closing costs.

Called HomeSteps, the program provides properties that are in "move-in" condition and are owned by Freddie Mac.

According to John Czerw, head of the program, Home-Steps will perform maintenance items, including painting, carpet repair or replacement as well as servicing heating and air conditioning units.

As for the financial aspects, HomeSteps has made special seller-financing arrangements with lenders who can provide financing for up to 95 percent of the purchase price.

Borrowers, however, will not be required to pay private mortgage insurance, saving the homeowner hundreds of dollars a year, according to Czerw.

Also, homebuyers, if they use HomeSteps, may not have to pay for an appraisal of the property.

On a typical home purchase, according to Home-Steps, a typical buyer may be able to save $2,500 over- all.

HomeSteps has 63 properties in Maryland, including seven in Baltimore County and nine in Baltimore.

To search for homes, buyers can go on the Internet at or by calling 800-972-7555.

The World Wide Web site also allows prospective homebuyers the option of creating a profile of the home they want and, when HomeSteps finds a match, they will send the buyer an update via e-mail.

Pub Date: 1/25/98

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