Treasurer Kennedy and Gov. Foster Unveil $10 Million Teacher Home Buyer Program

BATON ROUGE, LA State Treasurer John Kennedy and Gov. M.J. Mike Foster, Jr. joined private sector partners Fannie Mae and Hibernia National Bank today to unveil a new $10 million program that offers flexible, low-down payment, low-interest rate mortgages to certified public school teachers in Louisiana.

Treasurer Kennedy joins Governor Mike Foster and representatives of Hibernia Bank, Fannie Mae and PMI for the kickoff of the Louisiana Teacher Home Buyer Program.

We have developed a program that will help teachers stay in Louisiana without costing the state anything, said Treasurer Kennedy. By investing in the Louisiana Teachers Home Buyer Program, the state invests in its future. This is not a substitute for a pay raise by any means teachers still need and deserve a pay raise but it is a way for the state to say thank you to the men and women who influence the lives of our young people.
Government and education leaders have been examining ways in which we can recruit and retain teachers in the state of Louisiana, said Gov. Foster. Providing our state’s educators with affordable mortgage solutions encourages them to put down roots in the communities where they teach and strengthen the neighborhoods where they live. This initiative is an investment in our teachers, our communities and our state.
The Louisiana Teachers Home Buyer Program is a cooperative effort among the State Treasury, Hibernia National Bank and Fannie Mae. The initial program is $10 million and is available on a first-come,first-served basis. Program incentives include access through Hibernia National Bank to Fannie Mae’s most flexible mortgage products, including mortgages with low down payment requirements of $500 or 1 percent of the purchase price of the home, whichever is less, from the borrowers own funds. Teachers who may not have an established credit history will benefit from additional flexibilities including the use of a non-traditional credit history.
In addition, the program offers a low basic interest rate of 5.8 percent, reduced closing costs and appraisal fees. The program also offers teachers reduced rates on mortgage insurance through PMI. When compared to a typical mortgage with a 7 percent interest rate, a teacher choosing the Louisiana Teachers Home Buyer Program to purchase a $100,000home would save, on the interest alone, almost $30,000 over the life of the loan. The teacher could also save more than $1,000 on mortgage insurance and $400 on closing costs.

The American Dream is based on the philosophy that if we work hard, we can achieve home ownership, and the Louisiana Teachers Home Buyer initiative will keep that dream alive, said Mercy Jimnez, Fannie Mae’s senior vice president for its Southwestern Regional Office. Were proud to stand with the state of Louisiana as it supports schoolteachers. Home ownership is an important milestone and plays the single most influential role in determining personal wealth.

We’ve picked the best of the best for Louisiana’s teachers, said Paul Peters,president of Hibernia Mortgage Banking, Louisianas leading mortgage lender. This is the single best affordable home-loan program that Ive seenin my 28 years of mortgage banking. There’s nothing like it in the country.

PMIis delighted to be a part of an initiative that helps teachers attain the economic and social benefits associated with home ownership, said RogerHaughton, Chairman and CEO of PMI.

State officials want to expand the Louisiana Teachers Home Buyer Program once the first group of loans has been distributed. For more information, visit the Louisiana Department of the Treasury’s Web site at www.latreasury.comor contact Hibernia

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