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American Morning

Real People And Their Money: Buying A Home

Aired November 07, 2002 - 07:44   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


BILL HEMMER, CNN ANCHOR: Buying a home, it is called the American dream, and lenders these days are offering a dizzying array of ways to pay for it. Plus, it's a great time for prospective homebuyers, thanks to the historically-low mortgage rates.
What if you do not have the down payment, though, huh? We're going to talk about the problem this morning in this edition of "Real People and Their Money," as we say hello to Becky Dalton, who became a homeowner with no money down. She is live this morning in Memphis, Tennessee.

Good to see you, Becky -- good morning.

BECKY DALTON, FIRST-TIME HOMEOWNER: Hi. Good morning.

HEMMER: How did you do it?

DALTON: Well, GMAC just introduced me to this program. It's called Home Stretch, and -- because of a lot of the obstacles in buying a home is the down payment and financials. So, there were some qualifications you have to meet, and I did.

HEMMER: Wow!

DALTON: And so -- yes, so...

HEMMER: You know, Becky, I think the one thing, as people watch this, we're accustomed to putting 10 to 20 percent down in order to buy a home, sometimes as low as 5 percent, but you did none of that, right?

DALTON: Correct.

HEMMER: And would you have been able to purchase the home you got without it?

DALTON: Well, not necessarily no, unless you -- you know, I had to borrow to put down on the home, which in a lot of cases a lot of people do, being young, and they borrow from parents, or they take out loans to put down on a home. So, you're already in debt before you get into your house.

HEMMER: Yes, let's get a few facts right here.

DALTON: OK.

HEMMER: Can anyone do this, or is it just first-time buyers? DALTON: No, it's not just for first-time buyers. Anybody that qualifies is able to do this program.

HEMMER: You call it the Home Stretch. What do we need to know if we want to go ahead and contact that?

DALTON: Well, you'd need to contact GMAC Mortgage, and it's called Home Stretch, and it's a 4 percent down payment assistance program. And after you've lived in the home for 10 years, you are not obligated to pay that down payment back. So...

HEMMER: But if you move prior to 10 years, is there a penalty?

DALTON: I believe that you have to pay back at a certain rate percentage, and what is owed after -- whatever year you decide to leave. So, it just depends on what year.

HEMMER: Yes. What are you going to do with the money saved then?

DALTON: Well, mostly it went for home improvements in the last year, so it's helped a lot, because the first year when you live in your house, you do so much to it.

HEMMER: Yes, I bet you do.

DALTON: So -- yes.

HEMMER: A lot of trips to Home Depot and Lowes and the local hardware store.

DALTON: Exactly.

HEMMER: Well, listen, you get a double advantage, because mortgage rates are at an all-time low, and you figured out this great loan to get for you.

DALTON: Right.

HEMMER: So, enjoy your house, OK?

DALTON: Thank you.

HEMMER: You've given us all a really idea of what we can do, too, as we look at the mortgage rates right now with a cut again yesterday.

DATON: OK.

HEMMER: Hey, listen, Becky, thanks -- enjoy it, all right?

DALTON: Thank you.

HEMMER: Becky Dalton live this morning in Memphis.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.







Aired November 7, 2002 - 07:44   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BILL HEMMER, CNN ANCHOR: Buying a home, it is called the American dream, and lenders these days are offering a dizzying array of ways to pay for it. Plus, it's a great time for prospective homebuyers, thanks to the historically-low mortgage rates.
What if you do not have the down payment, though, huh? We're going to talk about the problem this morning in this edition of "Real People and Their Money," as we say hello to Becky Dalton, who became a homeowner with no money down. She is live this morning in Memphis, Tennessee.

Good to see you, Becky -- good morning.

BECKY DALTON, FIRST-TIME HOMEOWNER: Hi. Good morning.

HEMMER: How did you do it?

DALTON: Well, GMAC just introduced me to this program. It's called Home Stretch, and -- because of a lot of the obstacles in buying a home is the down payment and financials. So, there were some qualifications you have to meet, and I did.

HEMMER: Wow!

DALTON: And so -- yes, so...

HEMMER: You know, Becky, I think the one thing, as people watch this, we're accustomed to putting 10 to 20 percent down in order to buy a home, sometimes as low as 5 percent, but you did none of that, right?

DALTON: Correct.

HEMMER: And would you have been able to purchase the home you got without it?

DALTON: Well, not necessarily no, unless you -- you know, I had to borrow to put down on the home, which in a lot of cases a lot of people do, being young, and they borrow from parents, or they take out loans to put down on a home. So, you're already in debt before you get into your house.

HEMMER: Yes, let's get a few facts right here.

DALTON: OK.

HEMMER: Can anyone do this, or is it just first-time buyers? DALTON: No, it's not just for first-time buyers. Anybody that qualifies is able to do this program.

HEMMER: You call it the Home Stretch. What do we need to know if we want to go ahead and contact that?

DALTON: Well, you'd need to contact GMAC Mortgage, and it's called Home Stretch, and it's a 4 percent down payment assistance program. And after you've lived in the home for 10 years, you are not obligated to pay that down payment back. So...

HEMMER: But if you move prior to 10 years, is there a penalty?

DALTON: I believe that you have to pay back at a certain rate percentage, and what is owed after -- whatever year you decide to leave. So, it just depends on what year.

HEMMER: Yes. What are you going to do with the money saved then?

DALTON: Well, mostly it went for home improvements in the last year, so it's helped a lot, because the first year when you live in your house, you do so much to it.

HEMMER: Yes, I bet you do.

DALTON: So -- yes.

HEMMER: A lot of trips to Home Depot and Lowes and the local hardware store.

DALTON: Exactly.

HEMMER: Well, listen, you get a double advantage, because mortgage rates are at an all-time low, and you figured out this great loan to get for you.

DALTON: Right.

HEMMER: So, enjoy your house, OK?

DALTON: Thank you.

HEMMER: You've given us all a really idea of what we can do, too, as we look at the mortgage rates right now with a cut again yesterday.

DATON: OK.

HEMMER: Hey, listen, Becky, thanks -- enjoy it, all right?

DALTON: Thank you.

HEMMER: Becky Dalton live this morning in Memphis.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.