ELKINS PARK, Pa. - GMAC Mortgage Corp. is offering home loans that require down payments of only 3%.

The loans were tested recently in nine cities.

"We've been delighted with the response," said Mark Korell, president and chief executive of the unit.

"We've now decided to commit $50 million to the program nationwide," Mr. Korell added.

The company said the effort was similar to Fannie Mae's Community Home Buyers Program, which also offers a 3% down payment from the borrower.

But the Federal National Mortgage Association program requires an additional 2% from other sources or location in a targeted urban area.

The GMAC plan does not have such restrictions.

The announcement says the loans being offered are conventional, fixed-rate models that do not involve government programs.

However, flexible qualification standards are being, offered similar to those in government programs, and attendance at homebuyer education classes is required.

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