Bond issue contains incentives for Katrina-affected homebuyers
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.
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.
On the Net:
Mississippi Home Corp. Web site: http://www.mshomecorp.com