Zero Interest Mortgage Available For Single Family Homes and Foreclosures - New Info

The Community Clearinghouse Agency Inc. of Lancaster, Pa., is offering a new zero interest mortgage service to people wanting to buy their first home or to those dealing with foreclosure.

The essence of the new service is the mortgage holder would make payments that are applied strictly to the principal. The prospective homebuyer finds a property, submits a bid, and negotiates as usual. Where the process differs is the agency, in fact, buys the property and then turns it over to the zero interest mortgage holder. Only single family homes qualify under this plan. Concerning foreclosures, the service is valid only if the foreclosure is dissolved and the debt to the lending institution is decreased.

Mortgage holders can own their home outright within 12 years, as opposed to 30 , under this plan. this can be done because CCA stipulates that additional payments can be made during the year without suffering penalties.

Dale Vega, director of CCA, comments, “As people make additional payments, more funds become available for mortgages. The program will help stimulate the economy by buying and selling single family homes.”

Home buyers are required to put down a moderate down payment and feasible monthly payments are calculated not on an applicant’s credit history but on his present ability to pay. This payment would include the necessary taxes and insurance. There is a $100 administration fee each month but after that is paid the rest of the payment balance is applied to the loan principal. The same setup is applicable to foreclosures.

Vega added, “It’s like rent to own, only everything you pay above taxes and insurance goes directly to principal not interest.” The program will be funded with federal funds, grants, and sponsorships available nationwide, starting in Pennsylvania.

CCA has been in operation since 1995, and the agency is a 501-C-3 volunteer organized social service. In the past, CCA’s primary concern was with aiding abused women and families but now is expanding into the mortgage business.