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Huntsville Housing Developments Announces Fannie Mae PartnershipMortgagePress.comFannie Mae, Huntsville, Meadow Hills, non-profitRepresentatives from Fannie Mae and the non-profit Huntsville Housing Developments, Inc.
(HHDI) announced a joint initiative where Fannie Mae has agreed to purchase $1.5 million
in first mortgage loans originated by local lenders under the Meadow Hills 2000 initiative.
Meadow Hills 2000 is an initiative designed to support the revitalization of the Meadow
Hills neighborhood, adjacent to Alabama A&M University in North Huntsville. Fannie
Mae's participation will help local lenders replenish their mortgage funds so they can lend to
more families.
Through the Meadow Hills 2000 initiative, Fannie Mae has approved an underwriting
experiment in which local lenders require borrowers to make a 1% down payment. Fannie
Mae will purchase first mortgage loans originated by AmSouth Bank, Colonial Bank, First
Commercial Bank, Regions Bank, and SouthTrust Bank.
Through Meadow Hills 2000, the City of Huntsville has committed to increase home
ownership with $4 million in funding for property rehabilitation. These funds have been
supplemented by a $5 million property acquisition loan provided by the five aforementioned
lenders.
After renovation, the homes will be sold for approximately $55,000. HHDI was awarded a
grant from the city in order to provide down payment and closing cost assistance to qualified
buyers who are required to provide $500 of their own money toward closing costs.
Additional funds required to close are loaned by HHDI on a five-year forgivable note. HHDI
counselors will work with borrowers to prepare mortgage application materials, and will be
available after closing for additional consultation and guidance. All eligible borrowers are
required to attend a half-day home-buyer education class that covers the entire home
purchasing process including post-purchase responsibilities.