from Rush B. Deacon, President
The Arkansas Development Finance Authoritys announcement of a one percentage point drop in mortgage interest rates to 5.95% has more than tripled the average number of loans reserved during any previous week in 2001. Over $14.5 million in loans were reserved through the "HomeToOwn" Loan Program in March.
First-time homebuyers are the winners here. By taking advantage of this extremely low interest rate homebuyers can expect to knock hundreds of dollars off their annual mortgage payments, making homeownership much more affordable."
The funds are made available through ADFAs single family mortgage revenue bond program, known as the "HomeToOwn" Program. The program allows the Authority to offer funds year round through statewide participating lending institutions. 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). Some targeted counties are exempt from this rule. Also a borrowers 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.
The drop in interest rates has also increased requests for down payment and closing cost assistance by 50 percent over previous weeks. Under the "HomeToOwn" Program, ADFA offers up to $3000 in down payment and closing cost assistance to first-time homebuyers and qualified applicants.
The Many Faces of ADFAOver the next few months, I plan to profile eight individuals who have been touched by an ADFA program. These short stories describe what ADFA and its programs accomplish better than any chart or set of figures.
|Juanita Hinton, shown with her daughter, obtained a "HomeToOwn" mortgage loan at 5.95%, made possible by the Mortgage Revenue Bonds that federal law allows ADFA to issue for qualified borrowers. The total of her debt service, with taxes and insurance, is $30 less than her rental payments before she bought the rental home and she is building equity and stability for her future. ADFA has made almost 40,000 loans totaling over $2 billion since 1978.|
Approved a taxable bond issue with an ADFA guarantee in the amount of $265,000 for Rich-n-Tone Calls, Inc. to expand operations of a duck call manufacturing operation located in Stuttgart . Approximately 10 jobs will be created.
Approved a loan request in the amount of $46,675 for Betzner Seeding & Mulching of Biscoe, from ADFAs Intermediary Relending Program. The funds will be used to purchase equipment for erosion control. Three jobs will be created.
Approved the following tax-exempt Multi-Family Housing Bond Issues:
Steeplechase Apartments of Benton,
Oakwood Manor Apartments of Little Rock, $5,500,000
The Gables of Maumelle, $5,050,000
Approved the following HOME Program grants:
Stuttgart Housing Limited
The Meadows Limited Partnership(Salem), $100,000
City of Menifee, $201,028
Community Action Program for Central AR (Conway), 201,176
City of Montrose, $300,000
City of Portland, $280,000
Southeast Arkansas Community Action Corp. (Warren), $293,500
Village Oaks LP (Blytheville), $150,000
Arkansas Housing Group (Stamps), $350,000
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