Mortgage Rate Break Granted To Teachers;
Lower Down Payment Standards Part of UFT Agreement

By HOWARD MEGDAL

Virtually all city Teachers will qualify for advantageous mortgage terms through an agreement reached by the United Federation of Teachers and the Association of Community Organizations for Reform Now with the Bank of America and Citigroup.

The banks will provide grants of between $5,000 and $8,000 to eligible Teachers toward down payment and closing costs, regardless of credit score. Private Mortgage Insurance costs are also waived.

Nearly All Eligible

Teachers with a family income up to 200 percent of the national median salary will be eligible for the program with Bank of America, while those at 165 percent of that median can sign up with Citigroup.

According to the most recent estimate by the Federal Government, the median income for a single New Yorker is $41,554, and $72,170 for a family of four. Virtually every UFT member will qualify for the superior rates, according to union President Randi Weingarten.

"What I kept hearing from members is that they didn't just want to work in the city, but also live in the city," she said at an Oct. 5 news conference. "Thousands of UFT members can now be set on the path of affordable housing."

ACORN President Bertha Lewis echoed those sentiments, saying that, "We're in a crisis. And no one else in the country is doing this."

Free Seminar, Counseling

ACORN will hold "Homeowner Opportunities" seminars regularly in all five boroughs to introduce UFT members to the process. Once members attend the one-time, two-hour session, they can receive one-on-one counseling for the remainder of the process. Both the seminar and the counseling are free of charge.

Specifically, Bank of America is offering an interest rate half a percentage point below the market rate, and down payment requirements of 0 percent on 1- to 2-unit homes and condos; 3 percent of the purchase price on co-ops and 3-unit family homes, and 5 percent on 4-unit family homes.

Citigroup is offering a 3-percent down payment minimum on all but 3 to 4 family homes, for which it requires a 5-percent minimum.

Ms. Weingarten stressed the need for affordable housing to raise the retention rate for city Teachers. She said fewer than 50 percent of her members stick around for a sixth year of teaching.

"This kind of program will do more than attract good Teachers," she said. "It will keep good Teachers."

Ms. Lewis said the issue was also one of fundamental fairness. "You know the premium, super-duper mortgages that rich people get?" she asked. "We're giving it to Teachers."