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FREDDIE MAC, CHASE AND AREA PARTNERS LAUNCH ATLANTA CAMPAIGN TO HELP MORE MINORITIES REALIZE THEY MAY QUALIFY TO BUY A HOME
Reps. Lewis and McKinney Offer Support of Campaign
Atlanta, GA – In an effort to enable more African Americans and Latinos to take the important steps toward homeownership, Freddie Mac (NYSE:FRE), Chase Home Finance, Empire Board of Realtists, Greenforest Community Development Corporation, Home Buyers Assistance Foundation (HBAF) and the D&E Group, today announced a new awareness and outreach campaign in Atlanta called "Homeownership: Let the TRUTH Move You." The campaign debunks common misconceptions about homeownership that are stopping some minority families from even considering buying a home. Reps. John Lewis (D-GA) and Cynthia McKinney (D-GA) are supporting the campaign.
Research conducted by Freddie Mac suggests that reliable, accurate information about home buying may not be reaching minority communities. The research uncovered several common misconceptions about home buying among African Americans and Latinos. For example, about 40 percent of African Americans and Latinos believe that they need a 20 percent down payment to buy a home, and about half believe that they need almost perfect credit to get a loan. In addition, more than half of African Americans and Latinos believe that they must have the same job for at least three years to get a mortgage.
In addition, according to the U.S. Census Bureau, homeownership rates for African American and Latino households are 25 percent lower than the rates for non-minority households. In Atlanta the homeownership rate is 48 percent for African Americans, 37 percent for Hispanics and 76 percent for non-minorities.
"Buying a home is the cornerstone of the American dream, and many working families are struggling to take that important step toward economic independence," said Rep. Lewis. "Some have given up altogether. I commend Freddie Mac and its partners for creating a program that informs Atlanta's families that, with a little knowledge and planning, the goal of homeownership is still within reach."
"I wholeheartedly support Freddie Mac and their 'Homeownership: Let the Truth Move You' initiative," said Rep. McKinney. "This important project signals a fresh approach to addressing many misconceptions and barriers to homeownership for minorities and low-income citizens of Georgia. Homeownership is vital to becoming a stakeholder in our communities and is the most important asset to many of America's families. In these critical times of uncertainty and diminishing rights for the American consumer, I welcome this grassroots and informative initiative. I thank Freddie Mac for their foresight and concern for all of our families and citizens."
"We believe that lack of access to accurate information is a barrier to homeownership," said Craig Nickerson, vice president of Expanding Markets for Freddie Mac. "We can't allow misinformation to be a barrier to the families who may want to buy a home. The strength of this campaign is that it is a continuation of efforts by many organizations working together in the community to address the barriers faced by minority homebuyers. Freddie Mac is honored to be working with grassroots organizations that really understand how to reach people who may be facing obstacles to buying a home."
"Green Forest CDC applauds Freddie Mac's campaign to raise awareness to families and individuals in Metro-Atlanta, about the homebuying process," said Ralph White, Sr., CEO of Greenforest CDC. "We pledge our time and effort in helping to dispel myths, thus allowing homeownership to be possible for all who want to attain it."
The campaign, designed to address the misconceptions identified through Freddie Mac research, will provide straightforward and up-to-date information about all aspects of homeownership, including costs associated with home buying and credit history requirements through a series of one-hour educational sessions.
"Home Buyers Assistance Foundation, is proud to add Get the Facts Workshops to its curriculum through the partnership with Freddie Mac," said Dana McDaniel, housing counselor, HBAF. "We are excited about this new program because it is designed to increase awareness of home ownership opportunities, which is compatible with our own goals." McDaniel added, "HBAF is a non-profit organization dedicated to promoting stronger communities through home ownership. In addition to education, we offer credit counseling and down payment assistance."
HBAF will conduct the educational sessions at its Home Ownership Center, 1114 Mt. Zion Road Morrow, GA. The next sessions will be held April 9 from 1 p.m. – 2 p.m., April 18 from 5:30 p.m. – 6:30 p.m., May 7 from 1 p.m. – 2 p.m. and May 16, 2005 from 5:30 – 6:30 p.m. Interested individuals are encouraged to call a toll-free number 1-866-7TRUTHS to register for the free educational sessions.
"Chase's goal is to strengthen communities by increasing homeownership," said Mandala Jones, vice president of Chase Home Finance. "Chase offers a broad range of home financing solutions to individuals nationwide, and we are pleased to be working with Freddie Mac to provide the African American and Latino communities with useful information about the mortgage process and how to qualify to buy a home."
"The message 'Let the Truth Move You' is transforming lives by addressing the critical need for change," said Carrie Harris, president and CEO of the D&E Group, Inc. "Many low- and mod-income families are embracing change and dispelling life long myths to homeownership. As a result, this message illustrates to families, who are the back bones of communities who have been historically overlooked and underserved, that they too can realize the American Dream as an attainable goal."
"In keeping with the America Dream of Homeownership, the Freddie Mac Let the Truth Move You program is in line with the Empire Board of Realtists, Inc's, 67 year old motto of 'Democracy in Housing,'" said Lawrence Batiste, president, Empire Board of Realtists, Inc. "Our past, present and future goal is to assist minorities in buying a home in their place of choice. Our existence relies on the success of minority homeownership now and forever. We are extremely excited about playing a role in this program."
Freddie Mac is a stockholder-owned company established by Congress in 1970 to support homeownership and rental housing. Freddie Mac fulfills its mission by purchasing residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Over the years, Freddie Mac has made home possible for one in six homebuyers and two million renters in America.
With the 2004 merger of JPMorgan Chase & Co. and Bank One Corp., Chase Home Finance's parent company now includes more than 2,500 Bank One and Chase bank branches in 17 states. Chase Home Finance, an Equal Housing Lender, is headquartered in Iselin, New Jersey and is one of the nation's largest residential mortgage lenders, serving more than four million customers.
| MYTH |
FACTS |
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Need almost perfect credit rating to qualify
for a mortgage.
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- You don t need a perfect credit record. Even with past credit problems,
you may still be able to buy a home. And, you can fix and improve
your credit record.
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A down payment of as much as 20 percent is required
to buy a home.
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- You may be able to buy a home with a downpayment of 3 percent or
less. Today, the downpayment needed to buy a home is much lower that
it once was. However, closing costs, property taxes and moving expenses
are part of the cost of buying a home.
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Lenders share personal financial
information with each other and the government.
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- Banks and other financial institutions protect your personal financial
information – it s the law.
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People who do not have a checking
or savings account cannot buy a home.
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- Having a savings and checking account is a good idea. But you can
buy a home without having a bank account.
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You must have the same job for
at least three years to qualify for a mortgage.
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- Steady income is more important than how long you ve been on the
job.
- Income from second and third jobs can also be used when trying
to get a mortgage loan..
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