BEDFORD, N.H. – September 10, 2010 – (RealEstateRama) — New Hampshire Housing announced today a new mortgage rate of 3.5% under its Single Family Mortgage Program. This historically low rate is made possible through the agency’s partnership with the U.S. Treasury’s New Issue Bond Program (NIBP). To help stimulate home sales, on Sept. 1, 2010, the U.S. Treasury announced changes to the NIBP that will allow for even lower mortgage interest rates that housing finance agencies (HFAs) across the nation can offer first-time home buyers.
In the Granite State, New Hampshire Housing’s Single Family Mortgage Program will use funds obtained under NIBP to provide low-interest fixed-rate mortgage funds to assist eligible first-time home buyers. Recent changes to the Treasury program will allow New Hampshire Housing to provide, by far, the lowest rates in the mortgage program’s 30 year history. As of September 9, rates are at 3.50% with 1 point and 3.95% with 0 points. Down payment assistance is also available. Although the interest rates may change over time, the NIBP is expected to permit New Hampshire Housing to offer historically low rates throughout 2011.
“For New Hampshire, the Treasury’s action will result in one of the most significant impacts of the Housing and Economic Recovery Act (HERA) of 2008,” said Dean J. Christon, Executive Director of New Hampshire Housing. “These low rates will allow us, as well as housing finance agencies across the country, a historic opportunity to help first-time buyers to purchase a home at an affordable cost.”
The New Issue Bond Program, originally part of the federal government’s Homeowner Affordability and Stability Plan, was launched in late 2009. The initiative was designed to help HFAs across the country return to their normal role of providing below market interest rates for income qualified first-time home buyers.
Because of the New Issue Bond Program , New Hampshire Housing can sell bonds to Fannie Mae and Freddie Mac to finance mortgages for first-time home buyers. The bonds are securitized by Fannie and Freddie and then sold to the United States Treasury. When combined with the proceeds of bonds sold publicly to other investors, the Treasury program will provide New Hampshire Housing with up to $300 million in funds during 2010. This amount will support up to 2,000 mortgages for first-time home buyers.
Each state HFA that chooses to participate in the New Issue Bond Program pays a fee to access the program and cover the costs to the Treasury Department and taxpayers.
New Hampshire Housing Finance Authority is a self-supporting, public benefit corporation established by the state legislature. The Authority operates a number of programs designed to assist low- and moderate-income persons with obtaining housing. Since its inception, New Hampshire Housing has helped more than 38,000 families purchase their own homes and has been instrumental in financing the creation of more than 14,000 multi-family housing units. More information about its programs can be found on the agency’s website at www.nhhfa.org.