Printer Friendly

COMMONWEALTH TO ASSIST 1,200 FIRST-TIME HOMEBUYERS WITH $109 MILLION IN NEW MORTGAGE FUNDS

 COMMONWEALTH TO ASSIST 1,200 FIRST-TIME HOMEBUYERS
 WITH $109 MILLION IN NEW MORTGAGE FUNDS
 BOSTON, June 11 /PRNewswire/ -- Gov. William F. Weld and Secretary Mary L. Padula of the Executive Office of Communities and Development (EOCD) announced today the availability of $109 million in below market- rate mortgages beginning Friday, June 12, to help low- and moderate- income residents purchase their first homes.
 The mortgage funds have been raised by the Massachusetts Housing Finance Agency (MHFA) through the sale of federal tax-exempt bonds to private investors at no cost to the state. A significant portion of the funds is targeted to "priority borrowers" (veterans of Vietnam or more recent military conflicts, lower-income and minority households, and the physically disabled) and to buyers who purchase bank-owned properties or one- to four-family homes in need of rehabilitation in targeted inner- city neighborhoods.
 "This administration is committed to leveraging private investment to make it possible for residents to buy and rehabilitate their own homes," Weld said. "With these favorable MHFA mortgage interest rates and housing prices at their lowest level in years, people who have been shut out of the home-buying market now have a unique opportunity to invest in a home in their community," said Weld.
 Approximately 1,200 households are expected to be served with the new funding. Most of the MHFA mortgages will be offered at a fixed, 30-year interest rate of 7.5 percent, the lowest fixed rate in the agency's history.
 "With the downturn in the economy, urban areas across the state have suffered from an increase in foreclosed and abandoned properties," said Padula. "By creating opportunities for affordable home ownership, this mortgage funding can help us build safe and healthy neighborhoods where once there was urban disinvestment."
 Through several of the programs, lower-income purchasers also may qualify for graduated-rate mortgages which, for the first few years of the mortgages, are available at 6 percent. In addition to attractive interest rates, MHFA loans require a minimum downpayment of just 5 percent. Other benefits include flexible underwriting requirements and statewide availability. Financing is available through participating lenders and housing rehabilitation agencies for the following programs:
 General Lending ($62 million): These mortgages are for persons meeting the MHFA's general eligibility guidelines. Half the funds are reserved for six months for "priority borrowers," which are lower-income households, minorities, physically disabled persons or Vietnam era, Grenada, Panama and Persian Gulf conflict veterans.
 Acquisition Set-Aside (ASAP) ($25 million) and Real Estate-Owned (REO) ($12 million) Programs: These programs are designed to create opportunities for first-time buyers while helping to return some of the state's excess housing inventory to productive use. Graduated rate mortgages, starting at 6 percent, are available through both these programs for lower-income buyers.
 Neighborhood Rehabilitation Program (NERP) ($10 million): This program provides loans for the purchase and rehabilitation of homes in locally designated neighborhoods. Loans are available through local agencies which assist buyers in the loan application and renovation process.
 "Since 1979, through its first-time homebuyer programs, the MHFA has raised almost $2 billion in private-sector mortgage capital to make the dream of owning a home a reality for more than 25,000 Massachusetts residents," said MHFA Executive Director Marvin Siflinger.
 This tax-exempt bond financing was authorized through the federal Mortgage Revenue Bond (MRB) Program, which has enabled the MHFA, and housing finance agencies like it across the United States to finance low-interest loans for first-time homebuyers.
 The MRB program is likely to expire on June 30, 1992, unless Congress acts to extend it. The MHFA, in conjunction with other housing finance agencies across the country, has been working at the federal level for a permanent extension of the MRB program. A June 30 expiration of the program, if it occurs, will not affect the MHFA mortgage money announced today.
 To obtain brochures describing the MHFA's home ownership programs, prospective buyers should call the agency's Office of Single Family Programs at 617-451-2766.
 -0- 6/11/92
 /CONTACT: Diane Butler of EOCD, 617-727-7765, or Marty Vaananen or Charlotte Golar Richie of MHFA, 617-451-3480, x254/ CO: Massachusetts Housing Finance Agency ST: Massachusetts IN: SU:


CN -- NE009 -- 9212 06/11/92 11:58 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Jun 11, 1992
Words:690
Previous Article:SAUDI ARABIA'S PRINCE BANDAR BIN SULTAN VISITS RAYTHEON PATRIOT PLANT
Next Article:CALIFORNIA ENERGY APPOINTS MASON AS VICE PRESIDENT OF PROJECT DEVELOPMENT AND OPERATIONS


Related Articles
CUT-RATE LOANS AVAILABLE FROM STATE OF PENNSYLVANIA
SHAWMUT BANK ANNOUNCES AGREEMENT WITH MASSACHUSETTS ATTORNEY GENERAL'S OFFICE TO RESOLVE SECOND MORTGAGE AND HOME IMPROVEMENT ISSUE
FIRST EASTERN MORTGAGE OFFERS FIRST-TIME HOMEBUYER OPPORTUNITIES
FLEET LAUNCHES FIRST-TIME HOMEBUYER PROGRAM
Norwest Mortgage, Inc. and Freddie Mac Enter Into Business Alliance; Streamlined Approval Process, Lower Costs Among Borrower Benefits.
PA Treasurer Hafer Commits $50 Million More for Discounted Mortgages.
Fannie Mae unveils initiative to raise minority homeownership rate.
PA Governor Rendell, Fannie Mae Chairman Announce Program to Aid 250,000 Families with Homeownership.
National Homebuyers Fund, Inc. Delivers Homeownership Dream; Non-Profit Launches Program Aimed at Helping Low-Income Families.
Federal Home Loan Bank of Atlanta Announces the Opening of Its 2009 First-time Homebuyer Program Offering.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters