The Employer Assisted Housing Program, developed in partnership with Fannie Mae for the employees of Washington University, is now in place. Fannie Mae has entered into contractual arrangements with the following lenders who are prepared to make mortgage loans matching the requirements of the Employer Assisted Housing Program: Nations Bank, Mercantile Mortgage Co., Gershman Investment Co., Norwest Mortgage Co. and Commerce Mortgage Co.
Under the Employer Assisted Housing Program, the University will provide second mortgage loans to eligible employees who choose to buy a one- to four-family home in either the Forest Park Southeast or the Skinker-DeBaliviere neighborhoods. The loans will be for the lesser of $4,000 or 5 percent of the purchase price of the home and forgivable over five years if the employee complies with all program requirements, which include that the employee must reside in the home (with certain exceptions) and remain in the employment of the University.
Fannie Mae has two programs available under the Employer Assisted Housing Program. The Magnet 3/2 program is designed to assist low- and moderate-income employees. Under this program, home buyers make a minimum down payment of at least 3 percent of the purchase price of the home. The loan from the University can provide 2 percent of the minimum down payment, and the balance can be used to pay part of the closing costs.
The second program, labeled Magnet 5, provides for the home buyers to make a minimum down payment of at least 5 percent of the purchase price from their own funds. The loan from the University can be used to pay closing costs, to increase the down payment or to pay other costs related to the home purchase.
Any employee interested in the Employer Assisted Housing Program should call Brian Phillips of the Washington University Medical Center Redevelopment Corp. at (314) 652-0895. Phillips can provide detailed program guidelines and answer employees' questions.
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