New Program Lets Municipal Employees Buy Homes With Zero Down

BOSTON, Oct. 22, 2001 – Eastern Bank today announced that it has committed $5 million to a new state program aimed at helping teachers, firefighters, police officers and other municipal employees buy homes in the communities where they work.

The MassHousing Municipal Mortgage Program allows qualified municipal employees to forego the 5 percent down payment typically needed, enabling them to buy a home in the community where they work with no money down.

“With today’s real estate market, many municipal employees have been priced out of the communities where they work,” said Cindy Merkle, Eastern’s senior vice president in charge of mortgage banking. “The biggest obstacle is the down payment, not the ability to make the monthly mortgage payments. This program eliminates the down payment issue.”

To buy a $250,000 home with a conventional mortgage program, a buyer would typically need a 5 percent down payment, or $12,500. The Municipal Mortgage Program eliminates that requirement. In addition, Eastern is offering reduced closing costs, further reducing the amount of money the buyer needs up front.

“If they have put away some money, the buyers can now spend it on moving costs, some initial home improvements, or simply set it aside for other future needs,” Merkle said. “We’re proud to be part of this program and we look forward to helping those in public service achieve the dream of home ownership.”

In all, 58 banks have committed $221 million to the program, which was announced recently by Gov. Jane Swift. The program is open to full-time salaried municipal employees living in communities served by the banks. Buyers must meet income eligibility requirements. Eastern’s program is available throughout Eastern Massachusetts.

The loans will be insured by MassHousing’s mortgage insurance fund, reducing the risk to the banks. While allowing buyers to finance the entire cost of the home is riskier for banks, Eastern believes municipal employees are typically more stable than other industries, which substantially lowers any risk.

“Eastern is committed to serving communities in Eastern Massachusetts,” Merkle said. “With this program, we can also serve the employees who serve those communities.”

Eastern Bank is a $3.7 billion full-service banking company with 46 offices in Eastern Massachusetts. Eastern’s lines of business include consumer banking, corporate lending, capital markets, small business banking, cash management, equipment leasing, private banking, trust and investment management, mortgage banking, and consumer finance. For more information about Eastern’s mortgage programs, call toll-free at 888-4EB-MTGS, or visit www.ebmortgage.com.

For more information, contact: Joe Bartolotta, Public Relations Director, Eastern Bank,
(781) 596-4411, or e-mail Joe Bartolotta.