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July 2023 » thefivestar.com 9 July 2023 M T E C H language may not be English and a part of HUD Secretary Marcia L. Fudge's commit- ment to making equity a leading compass within the Biden-Harris administration. "Understanding the products, processes, and documents associated with a mortgage transaction is vital to a borrower's ability to become a successful homeowner," Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon said. "These new resources will help prospective home- buyers better understand their transaction and make more informed decisions before they are at the closing table." The translated documents include the HUD Addendum to the Uniform Residential Loan Application (HUD 92900-A) required for all FHA-insured single-family mortgages; model documents, including mortgage notes and riders used in FHA forward and Home Equity Conversion Mortgage (HECM) trans- actions; and required borrower disclosures. In addition, FHA now has newly translated versions of some of its most widely used single family homebuyer education materials and information resources, including its Save Your Home, Tips to Avoid Foreclosure bro- chure, its disaster relief and recovery options information card, and FHA "myth busters" question and answer cards. GUILD LAUNCHES 1% DOWN PAYMENT PROGRAM G uild Mortgage has announced the launch of its 1% Down Payment Advantage program, a new 1% down and 1% interest rate buydown (for the first year of the loan) to aid low- to moderate-in- come borrowers in today's tight market. For conventional loans, the typical down payment is 3%, Guild's new program allows homebuyers to purchase a home with a minimal down payment of 1% with the other 2% being covered by Guild to meet the 3% minimum. In addition to the low-down payment and interest rate buydown the program offers, borrowers will still have the flexibility to refinance with Guild at a later point with an added benefit of no lender fees under the company's Payment Protection program. "Guild is committed to providing inno- vative solutions that meet the current and future needs of homebuyers. No matter what is happening in the housing market, we want to get people into homes and help keep them there," said Mary Ann McGarry, Guild's CEO. "With our new 1% Down Payment Advantage program, we are meeting our clients where they are and addressing head on the acces- sibility challenges so many Americans are facing in today's housing market." The 1% Down Payment Advantage pro- gram builds upon Guild's Payment Advan- tage program—introduced in December of 2022—and has helped homebuyers achieve their homeownership goals. The program is available to first-time and repeat homebuyers purchasing single-family homes with income equal to or less than 80% of the area median income. David Battany, Guild's EVP of Capital Markets, emphasized the importance of addressing the three key areas that impact homeownership: the cost to get into the home, the monthly cost to stay in the home, and the ability to handle unexpected emer- gencies in the first five years of owning a new home. The 1% Down Payment Advantage program addresses all three. "We know that accessibility to home- ownership goes beyond just lowering the down payment. It's about ensuring long-term sustainability by tackling the three critical financial challenges of buying and maintain- ing a home: upfront costs, monthly expenses, and financial resilience after purchasing a home," Battany said. "With our 1% Down Payment Advantage program we support homebuyers in all three of these areas. By putting an extra two points of cash into their reserves on day one and offering a 1% one- year interest rate buydown that reduces their monthly mortgage payment, we assist bor- rowers to more quickly build up their cash reserves which helps sustain them in their new home during their critical first five years of homeownership when most first-time homebuyers typically have low cash savings reserves. This sets the stage for a successful homeownership journey, arming them with the confidence and means to handle life's unexpected surprises." "We know that accessibility to homeownership goes beyond just lowering the down payment. It's about ensuring long-term sustainability by tackling the three critical financial challenges of buying and maintaining a home: upfront costs, monthly expenses, and financial resilience after purchasing a home." —David Battany, Guild's EVP of Capital Markets