Agency Issues Bonds to Aid Washington, D.C., Mortgage Financing
The D.C. Housing Finance Agency has issued $50 million in bonds to provide low-interest home loans to low- and moderate-income borrowers in the District, according to the Washington (D.C.) Business Journal.
The agency says potential buyers in D.C. can apply for a 30-year, fixed-rate mortgage at a rate as low as 5.6 percent. First-time buyers can purchase a house anywhere in Washington. A first-time home buyer is defined as someone who has not owned a primary residence for the past three years.
Repeat home buyers are eligible to receive these special home loans if they purchase houses in certain neighborhoods. All potential home buyers must meet certain income and purchase-price requirements.
In the current bond issue, several changes have been made to the D.C. bond program. First, the Housing Finance Agency has streamlined the approval process by partnering with Countrywide Home Mortgage to conduct necessary compliance reviews of all loans originated under the program.
The new partnership allows participating lenders to receive loan approvals in less than 48 hours. Previously, loan origination and approval took five days. In addition, current homeowners can now refinance using the D.C. bond program and designate money from home mortgage loans to renovate their houses.
Participating lenders include American Home Mortgage, Countrywide Home Mortgage, First Horizon, First Home Mortgage, Industrial Bank, SunTrust Mortgage and Wells Fargo Home Mortgage.
“The D.C. bond program is a much-needed addition to the city’s mortgage loan market,” says Harry Sewell, executive director of the Housing Finance Agency, in a statement. “Although the agency was out of the mortgage loan market for a few years, we are committed to remaining a viable option for residents who wish to find a cost-saving way to buy a home in Washington.”
Since its establishment in 1979, the Housing Finance Agency has provided tax-exempt bonds to finance the purchase affordable housing consisting of more than 5,875 single-family homes across D.C.