GMAC Unveils New Low-Mod Products

GMAC Mortgage has announced the introduction of two new financial products aimed at helping immigrants and those with low to moderate incomes to obtain home loans.One program, Settle America, establishes a way for those without a traditional credit history to acquire home loans, a common challenge for immigrant homebuyers. When borrowers without credit histories have been able to get home loans in the past, they are often treated as risky, receiving expensive subprime loans. The GMAC program does not carry a rate premium. The other program, HomeStrength, is a downpayment assistance program similar to the company’s existing HomeStretch product, though the new offering is a conventional rather than a Federal Housing Administration loan product. Both HomeStretch and HomeStrength establish a forgivable second loan to aid with downpayment and closing costs.