Chase Manhattan, NAREB and Fannie Mae join forces to increase minority home ownership

An estimated 1,500 underserved and minority home buyers in four U.S. metropolitan areas will have access to low down payment mortgage financing as a result of a unique alliance recently announced by Chase Manhattan Mortgage Corporation, the National Association of Real Estate Brokers (NAREB) and Fannie Mae, the nation's largest source of home mortgage funds.

Fannie Mae has committed to purchase $100 million mortgage loans -- originated by Chase Manhattan in Chicago, Los Angeles, Miami and the Philadelphia/Camden area -- in an experiment that allows borrowers to put as little as 1 percent of their own funds toward the down payment for the purchase of a home.

There are two options in the experiment. Borrowers can qualify for a down payment of 3 percent, with 1 percent coming from their own funds and 2 percent from a grant, gift or seller contribution. With the 5 percent down payment option, the borrower contributes 2 percent from his own funds, and the remaining 3 percent of the down payment can come from a gift or unsecured loan from a party not involved in the transaction.

NAREB's role in the experiment will be to provide professional real estate services to the targeted minority and urban communities.

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