Homebuyers Helped Out by Little-Known Program

A little-known agency is looking for some prospective homebuyers who need to borrow money.The Housing Finance Authority of Manatee County, using proceeds from a $16.6 million bond issue, stated it wants to help qualifying residents finance their home purchases.The authority is offering down-payment assistance to buyers who meet income and other guidelines, and low-cost and low-interest mortgage loans through participating lenders.Created in 1979 to alleviate Manatee’s shortage of affordable housing, that is the mission of the authority. The non-profit authority uses the proceeds to underwrite mortgage loans, issues revenue bonds and applies borrowers’ monthly mortgage payments toward repaying the bonds.Authority bond money, under the program, is used to back a first mortgage for the purchase amount. Pierro stated, those are 30-year, fixed loans with a 5% interest rate, no documentary tax and no origination fees.Also, through a no-payment, no-interest second mortgage, the authority offers down-payment assistance of up to 4% of the purchase price. The second loan is forgiven if the borrower meets certain criteria after 9 years.A buyer’s household income cannot exceed $62,300 for a one- or two-person household, or $71,645 for households of three or more people, to qualify. Also, the borrower must have not owned a home in the previous three years and have a minimum FICO credit score of 600.Source: builderonline.com