Guaranty, Fannie Unveil 'Buy for Family' Mortgage

Milwaukee-based Guaranty Bank, in conjunction with Fannie Mae, has introduced the "Buy for Family" mortgage, which allows a qualified borrower to finance the purchase of a residence for parents or a sibling if they are unable to buy a home for themselves.Guaranty Bank will originate the loans, and Fannie Mae will purchase eligible loans. They describe Buy for Family as "a flexible, affordable mortgage that helps qualified buyers, such as the first-generation children of immigrants, purchase a home for their parents or siblings, who may not have traditional forms of credit or use mainstream banking and are, therefore, unable to qualify to buy the home themselves." Borrowers contribute at least $500 down from their own funds, with the remainder coming from a gift from their family member or grants from a church, employer, municipality, or nonprofit agency. To be eligible for the new product, a home must be located in Chicago, Atlanta, Detroit, or the state of Wisconsin. The companies can be found online at http://www.fanniemae.com and http://www.shelter-mortgage.com.