Editorial: Homebuyers get boost from state

Thursday, Feb. 5, 1998 | 10:52 a.m.

FOR a family looking to buy its first home, the biggest obstacle often isn't how to pay the monthly mortgage -- it's coming up with the down payment to get in the home in the first place.

To help out, the state Housing Division is expanding its home loan program to include down-payment assistance. The state Board of Finance last week approved a plan sponsored by state Housing Administrator Charles Horsey to set aside $500,000 for down-payment loans. The average loan is expected to be about $3,000 with an estimated interest rate of 4.99 percent. This up-front, down-payment loan will be available to those who finance their homes through the Housing Division, which provides mortgage loans to first-time homebuyers who have low to moderate incomes. To qualify for the low-interest mortgage, the individual also must be a first-time homebuyer or someone who hasn't owned a home in the previous three years.

Along with approving the expansion of the first-time homebuyer program, the state Finance Board also approved the Housing Division's request to issue $60 million in mortgage revenue bonds. The interest rate for first-time homebuyers who qualify could be as low as 6.45 percent on a 30-year loan. During fiscal year 1996, 686 mortgage loans were issued in Clark County through the program. The average household size in Clark County was two people, with an average family income of $34,747.

Government programs often get knocked by critics for not providing a benefit to society. But everybody wins under this program, which is self-funded and uses no taxpayer dollars to fund its operations. The family that needs assistance to get into that first home is helped. Developers benefit because it increases the pool of people who are eligible to buy a home. Southern Nevada itself gets a shot in the arm because homeownership instills pride in our neighborhoods and in our community.