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FOR RELEASE: March 6, 2001 CONTACT(S):
GMAC Mortgage Launches New Mortgage Program, 'Homestretch Plan' To Help Homebuyers Stretch Dollars Further
HORSHAM, PA. - GMAC Mortgage Corporation today introduced a new mortgage program designed to stretch new homebuyers' ability to purchase a home. HomeStretch Plan by GMAC Mortgage: Building Healthy Neighborhoods is an FHA fixed-rate first mortgage for lower- or middle-income, first-time, and move-up home buyers, which provides an additional 4% second loan to cover down payment, closing costs or pre-paid items (state restrictions or exclusions may apply). In most areas, homebuyers with a household income up to 150% (1) of the area median can use the HomeStretch Plan by GMAC Mortgage. "HomeStretch Plan by GMAC Mortgage is exciting because it can help buyers who may need the down payment assistance or reduce their out-of-pocket expenses," said Arthur Fleming, senior vice president of emerging markets for GMAC Mortgage. "HomeStretch Plan by GMAC Mortgage is a unique approach to creating a magnet for long-term business development," stated Fleming. "This is the first national mortgage product of its kind offered to consumers. Since introducing the product in February, we are pleased with the amount of interest it has attracted." Program requirements Eligible properties for HomeStretch Plan by GMAC Mortgage must be FHA-approved residential one- to four-unit dwellings, condos, planned unit developments, manufactured housing or mobile homes, and modular pre-cut or panelized housing. The 30-year term first mortgage is fully amortized and the second mortgage is zero interest, no payment and fully forgivable after 10 years occupancy in the home (2). First mortgage loan-to-value ratios must follow HUD guidelines and the second mortgage allows 4% of the first mortgage amount to cover the down payment, closing costs or pre-paid items (state restrictions or exclusions may apply). HomeStretch Plan by GMAC Mortgage is available in 28 states and the District of Columbia. The program will be available nationally by the second quarter of 2001. (1) Household income cannot exceed 150% of area media income (165% in New York City MSA, 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. (2) Subject to repayment to the Trust if the borrower sells the property and a Qualified Buyer does not assume the loan or if the Borrower voluntarily refinances it. About GMAC Mortgage GMAC Mortgage Corporation, headquartered in Horsham, Pa., originates first and second lien residential mortgage loans through a nationwide network of retail offices, direct lending centers and internet sites under the brands gmacmortgage.com and ditech.com, and GM Family First - a custom mortgage services program offered to GM employees, retirees and dealers. As of Dec. 31, 2000, GMAC Mortgage originated $16.8 billion in residential mortgages, representing more than 195,000 transactions. The company's servicing portfolio of more than $164 billion represents 2 million customers throughout the nation. |
