Freddie Mac, Faith-Based Groups Join to Aid Hispanic Home Buyers

SAN ANTONIO (By John W. Gonzalez, Houston Chronicle) August 6, 2004 - For the first time in Texas, residential mortgage investor Freddie Mac has joined with faith-based groups to offer training and other assistance to promote Hispanic homeownership.

Financial literacy classes at participating churches and other nonprofit entities will prepare applicants to share in $25 million in loans that will be available with as little as a $500 down payment, officials said Friday as they launched "Catch the Dream San Antonio."

"I am truly excited to be a part of this faith-based initiative and the work that we're doing to extend homeownership opportunities to more Hispanic' families -- especially in this area and in other underserved communities," said Freddie Mac Vice President Tonya C. Jackson, who oversees the single-family lending division.

Reducing buyers' initial costs should allow them to find better-built homes, participants said.

"Their income can go farther, giving them the ability to buy a home that does have more quality," said Vaughn D. Irons, Freddie Mac's national director for community development lending.

"The nonprofit will be doing the housing development," added Tim Hathaway, Freddie Mac's local representative. "They're connected to the community, they're accountable to the community."

Freddie Mac, one of the nation's largest investors in home mortgages, will make the $25 million available through SouthTrust Mortgage. Applicants will be recruited and trained in a team effort involving the city of San Antonio, Macedonia Community Development Corp., Churches for Social Action and San Antonio Baptist Association.

Similar alliances have been formed in recent months in Tucson, Ariz.; Salt Lake City; Birmingham, Ala.; Buffalo, N.Y.; Chicago; and Los Angeles.

"The response has been tremendous. In fact, we're looking to do more efforts just like this," Jackson said.

The partnerships were created to fulfill a mandate from President Bush to add 5.5 million Hispanic homeowners nationwide by 2010.

"Each partnership is unique," Irons said.

"This one here -- because the faith community in San Antonio is so strong -- it seemed to be the natural tie for us to build an initiative around it," Irons said at a ceremony at the Barbara Jordan Community Center on the city's east side.

Macedonia Baptist Church Pastor Jerry William Dailey said his congregation, on the west side, was pleased to become a key player in the plan. About 50 other faith-based entities are available to help.

"What a blessing, what a privilege, to be here and see the dream become a reality," Dailey said. "We've had some delays, we've had some difficulties, we've had some dead ends, but thank God we're here today."

Dailey said it isn't enough to put buyers into new, yet shoddily built homes, a widespread problem in this city.

"If all we can afford is junk, then that's all we're going to get. We want people to have not just affordable housing but quality affordable housing," Dailey said.

Another pastor said the program's instructive role will be crucial.

"Those of us who are foot soldiers in the housing industry understand that although the process can be long and hard, we come together for the purpose of teaching people how to fish. What will they catch when they go out? I hope they'll catch the dream of homeownership," said the Rev. Carl McCluster of MC Vision Ministries, one sponsoring group.