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October 2002

Arkansas Development Finance Authority
423 Main Street, Suite 500
P.O. Box 8023
Little Rock, AR 72203-8023

 

ADFA Offers 5.25% Home

Loan Rate – Lowest Ever

For the third time in less than a year, the Arkansas Development Finance Authority (ADFA) has dropped its interest rate on thirty-year fixed rate mortgages to a new all time low. The 5.25% rate is 50 basis points lower than any the Authority has offered in its 25-year history.

The funds are made available through ADFA’s single family mortgage revenue bond program, known as the "HomeToOwn" Program. The program allows the Authority to offer funds year round and to adjust interest rates up or down to match market demands, which continue to experience a downward trend.
We are pleased that we are able to provide another great rate to Arkansans statewide. As the state’s economy changes, the "HomeToOwn" program allows ADFA to respond quickly and effectively in order to have the greatest impact on prospective homebuyers.

The program works like this -- mortgage funds are reserved through statewide participating lending institutions. Except within certain exempt counties in the state, to be eligible for the loans, an applicant must be a first-time homebuyer (must not have owned his/her principal residence for three (3) years prior to closing the bond loan). Also a borrower’s income and the sales price of the house cannot exceed specified limits. These limits vary depending on the number of family members and the county in which the property is located.

Under the "HomeToOwn" Program, ADFA also offers up to $3000 in down payment and closing cost assistance to first-time homebuyers and qualified applicants throughout the state of Arkansas. It is a second mortgage loan issued in conjunction with ADFA’s first mortgage loan.

We have found that cash for a down payment is the number one obstacle in obtaining homeownership for most low-income Arkansas families. This program is designed to move families past that barrier.

ADFA has been providing below-market interest rate mortgages since 1978. During that time over 40,000 loans have been made to low and moderate income homebuyers.

 

Board Actions
(August & September meetings)

ADFA Board of Directors took the following actions during its August and September 2002 board meetings:

Approved the issuance of $6.3 million in Tax-Exempt Multi-Family Housing Bonds for Mabelvale Apartments of Little Rock. The funds will be used to acquire property and construct 132 unit apartment complex for families of modest income.

Approved the issuance of $9 million in Tax-Exempt Multi-Family Housing Bonds for Capitol Hill Apartments of Little Rock. The funds will be used to acquire property and construct a 190 unit apartment complex for families of modest income.

Approved the issuance of $4.175 million in Tax-Exempt Multi-Family Housing Bonds for Briarwood Apartments of Ft. Smith. The funds will be used to acquire property and rehabilitate a 128 unit apartment complex for families of modest income.

Approved the issuance of $191,500 in Agricultural Development Bonds for Robert and Mary Godwin of Prescott, to provide financing for land improvements and equipment.

Approved the issuance of $14.61 million in Economic Development Revenue Bonds to provide permanent financing for the following two projects: Arkanasas Glass Container Corp of Jonesboro and Yanoor, Inc of Monticello.

Gave contingent approval to Bradley Lumber Company, Inc., for a bond guarantee in the amount of $3.7 milllion for acquition of lumber plant located in Warren, AR.

Approved the following HOME Program projects:

*City of Clarendon received $59,343 for a Homeowner Rehabilitaion project.

*City of Dumas received $230,091 for four Homeowner Rehabilitation projects and the two Homeowner Recon- struction Projects.

*Lighthouse Outreach Inc. of Vilonia, AR received $59,579 for a homeowner rconstruction project.

*Drew County Public Faxilities Baord received $25,000 for a homeowner rehabilitation project in Monticello, AR.