Multnomah County sets up mortgage aid for union employees

More than 4,000 employees of Multnomah County are eligible to apply for an affordable home mortgage program sponsored in part by the AFL-CIO.

The Homeownership Opportunity Initiative will provide $10 million in low down- payment mortgages with reduced mortgage payments for the first five years, savings on mortgage insurance and easier qualifying ratios to AFL-CIO union members and county employees. Further enhancements offered by HomeStreet Bank, including over $1,000 in closing cost reductions on a typical loan, translate into significant savings for buyers.

The Portland Housing Center and the Vancouver Housing Resource Center provide counseling services to potential homebuyers. Some financial resources are available to buyers who meet certain income criteria.

The program is a national partnership between the AFL-CIO Housing Investment Trust, a national union pension real estate investment program, and Fannie Mae, the nation's largest source of financing for home mortgages. The trusts invest union pension funds to purchase mortgage-backed securities, which allows the trust to buy the loans originated from the Homeownership Opportunity Initiative.

HomeStreet Bank is the designated lender.

Since March 1998, the program has provided more than 235 mortgages and $40 million in financing. These investments in Portland and Multnomah County total over $12 million.

County employees can use the mortgage when buying an existing single-family home or condo in Portland, Vancouver and surrounding counties.

The Homeowners Initiative is modeled after programs already under way in Seattle, Vancouver and Portland.

County commissioners approved the plan Feb. 1 on a vote of 4-0, and then opened the doors of the board's auditorium to an overflow crowd eager to learn more about the program.

"This initiative provides key savings in closing costs and monthly mortgage payments, allowing more working men and women to afford to live in the county - a win-win for the whole community," said Sue Krake, senior deputy director of Fannie Mae's Partnership Office serving Oregon, Idaho and southwest Washington.

Ken Allen, executive director of Oregon Council 75 of the American Federation of State, County and Municipal Employees, said, "This is a great program for our members, particularly our public sector employees. Union pension dollars are benefiting union families, which helps to build strong communities throughout the region."

Aaron Prince, regional director of the AFL-CIO Housing Investment Trust, remarked, "The trust takes a great deal of pride in how we reach union members with products that enhance their ability to become homeowners - particularly by using our capital to leverage other resources available in the community."

County employees and union members interested in learning about the Homeownership Opportunity Initiative should call HomeStreet Bank at 503-227-3956 or the Portland Housing Center at 503-202-7744.

Attractive Mortgage Features

* Interest rates reduced 1/2 of 1 percent during the first 60 months of the loan.

* Closing cost savings total about $1,200 on a typical $150,000 mortgage.

* Buyers get reduced rates for mortgage insurance through Radian Guaranty and PMI mortgage insurers.

* Underwriting ratios of 33 percent/38 percent increase a borrower's purchasing power.

* With no income limits, more dual-income families qualify.