Bond issue contains incentives for Katrina-affected homebuyers

Published 6:04 pm Friday, July 7, 2006

An $80 million bond issue closed by Mississippi Home Corp. could provide incentives for homebuyers affected by Hurricane Katrina.

Residents displaced by the Aug. 29 storm can qualify for a discounted interest rate of 5.74 percent on their mortgage loans.

The Clarion-Ledger of Jackson reported Thursday that about 750 families could benefit from the program.

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The reduced rate is applicable for those purchasing homes in Hancock, Harrison, Jefferson, Pearl River, Stone and George counties. It is being made possible by the inclusion of about $20 million in Gulf Opportunity Zone bonds.

Mississippi Home Corp., as part of the Mortgage Revenue Bond Program, provides downpayment assistance with a cash advance of 3 percent of the loan amount. Borrowers do not have to repay the downpayment assistance.

Borrowers across the state can receive mortgage loans at a 5.84 percent rate, and the 3 percent cash advance.

The entire bond issue was purchased by Freddie Mac.

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