EBRMFA plans to raise $20 million for local home mortgages
January 20, 2009
Adverse market conditions had blocked bond sales since December 2007
BATON ROUGE— Taking advantage of improved market conditions and increased consumer demand, the East Baton Rouge Mortgage Finance Authority is moving forward with a $20 million bond sale that will fund mortgages for an estimated 160 local homebuyers.
EBRMFA Chairwoman Astrid Clements said today her organization voted at its July 23 meeting to proceed with a bond sale as soon as possible with hopes of having money available for mortgages by the end of August. Adverse bond market conditions have prevented the Authority from selling bonds to fund its mortgages at competitive rates since its last bond issue in 2007.
“Prospective homebuyers, real estate agents and our lending partners have been calling in increasing numbers to see if we have money available for mortgages,” Clements said. “This proposed bond sale will give the Authority the opportunity to help qualified buyers in East Baton Rouge Parish fulfill their dreams of owning their own homes.”
The Authority anticipates it will be able to offer 30-year first mortgage loans to eligible middle- to low-income homebuyers at competitive interest rates. The Authority is also developing a program to help eligible first-time buyers take advantage of a new $8,000 federal tax credit.
Over the past 30 years, the Authority has provided more than $914 million in mortgage loans to over 15,000 middle- to low-income households.
The Authority provides the funds but the mortgages are made available through participating local banks and mortgage companies.
The Authority will provide details of its new mortgage programs after the $20 million bond sale is completed.