Five CUs in Pilot of Loan Program from Irwin Mortgage For Underserved Home Buyers

INDIANAPOLIS – Five east coast credit unions are among the lenders participating in the pilot phase of a new loan program from Irwin Mortgage Corp. targeted to expand homeownership opportunities for underserved homebuyers. The five CUs selected for the launch of homeZownT are: MTC FCU, Greenville, S.C.; Duke University CU, Durham, N.C.; Omni CU, Jacksonville, Fla.; Virginia Educators CU, Newport News, Va.; and SSA Baltimore CU, Reisterstown, Md. The company’s new homeZownT loan program allows financing up to 100% and up to 6% seller contributions. Under certain restrictions, no mortgage insurance will be required. Most Fannie Mae and Freddie Mac programs allow up to 3% seller contributions towards closing fees, but homeZown’s 6% seller contribution is based on the HUD standard, explained Ray Webber, vp, product development for Irwin Mortgage. The idea is to encourage buyers to use the program, he said. There are also no income restrictions to qualify for homeZown, and downpayment assistance is available. During the pilot phase of the rollout which is expected to continue through the first quarter of 2003, Irwin Mortgage is offering the homeZown loan program in 28 cities throughout the U.S. These cities have zip codes that have been designated by HUD to be low and moderate income areas. The company said homeZown is designed “to help individuals and families in historically underserved areas achieve homeownership with flexible mortgage terms and qualifying credit guidelines” and “to break down the monetary barriers that prevent individuals and families from purchasing a home,” the company said. Irwin Mortgage kicked off the pilot phase of homeZown in mid-November. By the second week in December, Webber said the company already had $50 million in closed loans from the program. Irwin Mortgage is the 14th largest lender in the U.S. to African Americans and the 18th largest lender to Hispanics. [email protected]