On Monday, Mississippi Home Corporation, whose mission includes mortgage financing for the state's working families, announced that it is taking reservations for $25 million in bond funds for home buyers.
The 2009A bonds will fund 30-year mortgages at a fixed rate of 5.81 percent statewide. The program includes a cash advance of 3 percent of the loan amount to assist homebuyers with down payments and closing costs, according to a release. Families purchasing homes in Jackson, Harrison, Hancock, Pearl River, Stone, and George counties, and families directly affected by Hurricane Katrina, are eligible for a special interest rate of 5.80 percent.
MHC sees the availability of the funds as an indication that the credit crisis is drawing to a close.
"This is the first time in roughly a year that we've been able to sell our bonds and offer a competitive interest rate, so we're happy to be able to meet the demand," said MHC Executive Director Dianne Bolen in the release. "Tighter credit markets and a lack of potential investors have prevented MHC from issuing Mortgage Revenue Bonds because the interest rate on the loans would have been prohibitively high," she added.
For details about the program, go to the Mississippi Home Corp Web page or call 601-718-4536. A list of participating lenders is available as a download from the Web site.
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