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Arkansas Development Finance Authority

Press Release

For More Information, Call: ADFA Communications Manager Derrick Rose, 501-682-5904

 

 

Now Easier for Veterans to Get Affordable Mortgages

    The Arkansas Development Finance Authority is offering military veterans the opportunity to apply for below market interest rate mortgages through its HomeToOwn Loan Program.
 

The Tax Relief and Health Care Act of 2006, signed by President George W. Bush, waived the first-time home-buyer requirements for veterans applying for mortgage revenue bond loans in 2007. The act currently only extends through 2007.
 

Murray Harding, ADFA's single-family program manager, said while a first-time home buyer is someone who has not owned a home in the previous three years, that requirement is being waived for veterans this year.
 

The ADFA HomeToOwn Loan Program currently offers 30-year fixed-rate mortgages at 5.5 percent.  The mortgage funds are reserved through a statewide network of participating lending institutions.

Applicants must meet the definition of a veteran outlined in Section 38 of the U.S. Code and must have been honorably discharged or released from the military.

To qualify, a veteran also cannot have previously obtained a home loan using the mortgage revenue bonds and it must apply to new mortgages only, not refinancing.

Prospective buyers also must meet income and purchase price limits, which vary by county, and must occupy the property as their principle residence.

“The bottom line is, this makes it easier for veterans to buy a home,” said Harding.  “There is no limit to the number of veterans who may apply this year.”

Sara Moore, vice president of housing said she hopes the exception will encourage veterans around the state to apply for the program and move toward home ownership.

To get more information regarding the ADFA HomeToOwn program including purchase price and income limits go to ADFA’s web site at www.arkansas.gov/adfa or call for an ADFA underwriter at 501-682-5900. 

 

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