FreshRate Initiative Puts Home Ownership In Reach

(LOUISVILLE, September 30th, 2003, 5 p.m.) -- In an effort to help more Kentucky families buy homes and stimulate local economies, Louisville/Jefferson County Metro Government Mayor Jerry Abramson Tuesday joined the Kentucky League of Cities, Fannie Mae, and housing leaders to announce FreshRate, a down payment assistance initiative for home loans.

The program will provide borrowers with four percent of the purchase price of the home for down payment and closing costs.

It is not limited to first time homebuyers and is completely forgiven if the buyer stays in the home for 10 years.

"One of the keys to achieving the American dream is being able to own a home," said Louisville Mayor Jerry Abramson. "Home ownership helps families build credit and equity and instills a sense of community and civic pride. Through the FreshRate initiative, the Kentucky League of Cities is providing a crucial boost to working families that might otherwise have trouble affording the down payment on a new home."

To qualify for a FreshRate loan, the applicant's income must not exceed 115 percent of the HUD area or state median income for a family up to three, and 125 percent for a family of four or more. For the Louisville MSA, the annual income limits are $64,630 and $70,250 respectively. A participating lender must approve the buyer's credit and the home must be their primary residence.

Through mortgage lender Old National Mortgage, the FreshRate initiative will be made available to mortgage brokers across the state. KLC is establishing lender partnerships throughout Kentucky. Current lender partners include Fifth Third Bank, Republic Bank and Trust Company, Broadview Mortgage, Kentucky Fidelity Mortgage Company and Carteret Mortgage Corporation.