DC HFA Issues Mortgage-Earmarked Bonds

The D.C. Housing Finance Agency has announced the issuance of $50 million in bonds earmarked for low-interest mortgage loans to the city's low- and moderate-income borrowers.The current applicable interest rate is 5.6% on 30-year fixed-rate mortgage loans to first-time buyers, who are allowed to buy property anywhere in the Washington, D.C. area, as well as non-first-timers who agree to purchase property in designated neighborhoods. To streamline the issuance, the HFA said, the D.C. bond program partnered with Countrywide Home Loans for the approval process and compliance review of all loans, which is required from all participating lenders. (Loans were previously processed in-house by the HFA staff.) In addition, homebuyers are allowed to refinance their loans and separate loan funds for renovations.