Credit unions get flexible real estate loan programs

Inman News
Mortgage buyer Freddie Mac and the Credit Union Mortgage Alliance Network (CUMAnet) have formed a partnership to provide new home-ownership opportunities to credit union members.

Under the recently announced agreement, CUMAnet will begin marketing Freddie Mac's suite of affordable lending products, including Home Possible, a flexible credit and low-down-payment mortgage option designed to help lenders enable more first-time home ownership among credit union members.

The agreement calls for Freddie Mac and CUMAnet to work together and develop and distribute information that would help more potential borrowers understand the mortgage process. Among the initiatives the organizations will promote is material from Freddie Mac's "Homeownership: Let the Truth Move You" campaign.

"Homeownership: Let the Truth Move You" campaign is a national effort launched in 2004 by Freddie Mac that works to provide accurate information about the home-buying process. Research shows that many potential home buyers don't consider home ownership because of the "myths" about the process. For example, a number of potential home buyers believe that at least a 20 percent down payment is required to purchase a home. With Freddie Mac's suite of Home Possible mortgages, qualified borrowers may get into a home with zero down and with just $500 from their own savings for closing costs. The balance of the closing costs can be paid through a qualified grant or gift.

CUMAnet is a credit union-owned real estate service organization, providing residential mortgage and home equity loan products and related services to credit unions nationwide.