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TMCNet: Mortgage bond money in demand

[March 14, 2010]

Mortgage bond money in demand

EL PASO, Mar 14, 2010 (El Paso Times - McClatchy-Tribune Information Services via COMTEX) -- The city has received a big response from homebuyers for $24.5 million in mortgage bond money. It was made available in January to finance used-home purchases and provide down-payment assistance to mostly first-time buyers with low and moderate incomes.


At the end of last week, $11 million of the mortgage money was still available, according to the El Paso Housing Fiance Corp., an independent agency created by City Council 31 years ago to oversee bond-financed mortgage programs.

"The money has been going pretty fast," said Adrian Duran, executive director of the housing finance agency. Many people wanted to use the bond financing and also get the $8,000 federal tax rebate available until April 30 for first-time buyers, he said.

The biggest demand has been for mortgage money available for used-home purchases citywide. At the end of last week, $6.3 million, or 32 percent of $19.5 million set aside for citywide use, was still available.

Also available was an additional $4.7 million of $5 million set aside for used-home purchases in targeted areas in Central El Paso, and pockets in the Lower Valley and Northeast.

The main demand has been for the citywide pot of money, Duran said.

Mortgage money for targeted, low-income areas of El Paso has not been in demand, possibly because homes in those areas are older and not as many homes may be for sale as in other parts of the city, he said.

Rocky Mountain Mortgage, one of three lenders allocated mortgage money through the program, has exhausted its citywide pot of money with 125 homebuyers. They have either closed on a home or are in the process of closing, said Dean Inniss, senior vice president of the mortgage lender.

Rocky Mountain still has money available for home purchases in the targeted areas, he said.

Patriot Mortgage has exhausted its allocated funds.

GECU, an El Paso credit union, still had about $8.5 million in bond money available last week, it reported. About $6 million of that is for citywide use, and $2.5 million for targeted areas.

Inniss, at Rocky Mountain, said the program is popular because it provides down-payment and closing-cost assistance of 3 percent of a loan amount, and the mortgage rates of 5.125 percent to 5.375 percent are competitive.

Buyers cannot have owned a home in the past three years, unless a home is in a targeted area.

The annual income limit to qualify for the financing is $66,010 for a family of three or larger, and $80,360 if a purchased home is in a targeted area.

Vic Kolenc may be reached at vkolenc@elpasotimes.com; 546-6421.

Information For more information on the El Paso Housing Finance Corp. mortgage money: --Call 542-3278 to request an informational brochure on the program.

--Go online to www.elpasohfc.org and click on "frequently asked questions." --People also can call lenders with remaining mortgage money: GECU, 774-6081, or Rocky Mountain Mortgage, 593-3111.

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