For release: July 6, 1998 King County, Washington State Housing Finance Commission and Fannie Mae announce loan program for first-time home buyers Due to the number of calls received, Norwest Mortgage has changed the number you should call to inquire about a loan. Please call 1-(888) 256-9840. King County Executive Ron Sims announced a new partnership with the Washington State Housing Finance Commission and Fannie Mae that will make $850,000 in down payment loans available for first-time home buyers in King County. The Open Door Loans will be offered by Continental Savings Bank and Norwest Mortgage. First-time home buyers with incomes up to the King county median ($60,000 for a family of three or more) will be eligible to borrow up to $5,000 to pay down payment and closing costs. Lower income buyers (up to $40,750 for a family of three) will receive a reduced interest rate loan. "Helping families afford home ownership is a priority for King County," said Sims. "We know that hopeful first-time buyers are struggling to save for a down payment, while their rent is going up and so are house prices. This program will help them raise the funds they need to buy that first home." (left to right) Heyward Watson, Fannie Mae's Seattle Partnership Office; Josephine Tamayo-Murray, Washington State Housing Finance Commission; King County Executive Ron Sims; Byron Wallace, Norwest Mortgage; Dick Swanson, CEO Continental Savings Bank King County Councilmember Cynthia Sullivan added, "This can make the difference between having homes working families can afford and housing that prices families out of the market," Sullivan said. "This exciting program complements all our efforts to enhance neighborhoods and supports working families." The Open Door Loan program is funded through a taxable investment note issued by the Housing Finance Commission and purchased by Fannie Mae. The Commission and King County have jointly created a reserve fund to guarantee the note and buy down interest rates for buyers below 80 percent of median income. "We're very pleased that King County was willing to launch this pilot program with the Commission," said Busse Nutley, chair of the Washington State Housing Finance Commission. "It's a model that we intend to replicate with other local governments, making down payment loans available to first-time buyers around the state." "Affordable housing is the target," said Congressman Jim McDermott of Seattle. "This program and the work by King County, the Housing Finance Commission and Fannie Mae is another key component in helping our families become a part of the American dream of home ownership." Open Door Loans are available to first-time buyers purchasing homes (including townhomes and condominiums) in King County valued up to $160,000 for existing homes or $180,000 for new construction. The 15-year, fully amortizing loans can be used with any traditional or government first mortgage. The down payment loan funds will then be made available to borrowers through mortgage lenders as secured second mortgage loans. The funds will cover a portion of the buyer's down payment for closing costs required to obtain a first mortgage. The pilot program in King County will offer $850,000 in loan funds. The County and Commission intend to make additional loan funds available for King County borrowers as these funds are expended. "Innovative partnerships like Open Door Loans represent the best way to create housing opportunities," said David Bley, director of Fannie Mae's Seattle Partnership Office. "We've pooled our resources and our talent and found new ways to do business and create greater opportunities for first time home buyers." Potential borrowers should contact Continental Savings Bank at (206) 628-0207 or Norwest Mortgage at (425) 828-8950 for more information. For further information on the program contact Jean Carpenter, King County Executive Office, (206) 296-4007, or Rhonda Rosenberg, Washington State Housing Finance Commission at (206) 287-4445. More information can also be found at www.fanniemae.com Updated: July 7, 1998 Executive's news King County | Executive | News | Services | Comments | Search Links to external sites do not constitute endorsements by King County. By visiting this and other King County web pages, you expressly agree to be bound by terms and conditions of the site. The details.