Home-buying aid approved

Friday, Jan. 30, 1998 | 9:57 a.m.

CARSON CITY -- Many low-income families may earn enough to make monthly payments on a home mortgage but they don't have the down payment needed to qualify for the initial loan.

So the state Housing Division is adding a new option to its home loan program -- down-payment assistance.

"If there's a weakness in the program, it's we don't have down-payment assistance," State Housing Administrator Charles Horsey said.

The state Board of Finance Thursday approved a financing plan by Horsey's division to free up $500,000 for home down-payment loans. Horsey said the average loan would be about $3,000 with an estimated interest rate of 4.99 percent.

The up-front money would be loaned only to those people who finance their homes through the state's program. The average age of those now financing homes through the program is 35.

The down-payment assistance, which should be available starting in April, would help low-income families purchase a home sooner. Residents would have to meet certain income guidelines before qualifying.

The housing division will refinance some 1979 bonds for the $500,000, thereby getting a lower interest rate.

The finance board also approved the housing division's request to issue $60 million in mortgage revenue bonds to loan to low- and middle-income families so they can buy homes. He said the interest rate could be as low as 6.45 percent on a 30-year loan.

"Lenders and realtors are waiting at the starting gate for release" of the bond money, Horsey said.

Last year, Horsey said, an $80 million housing bond issue was claimed within two days of its release.

There have been only a small number of foreclosures on those who borrowed money through the state program, Horsey said.

The finance board also approved the issuance of $10.3 million in mortgage revenue bonds for building the 204-unit Cheyenne Point Apartment Project in Clark County for low- and moderate-income families.

Lon DeWeese, chief financial officer for the housing division, said this project was attractive because it has a number of units for bigger families which are sorely needed. There will be 96 three-bedroom units and 12 with four bedrooms at the project at Cheyenne Avenue and Las Vegas Boulevard.

Monthly rent will be $502 for one bedroom; $613 for two bedroom; $709 for three bedrooms; and $769 for four bedrooms.

Also approved by the board was the proposal by state Treasurer Bob Seale to refinance $295 million in bonds sold previously through the state's bond bank for the Las Vegas Valley Water District and the Southern Nevada Water Authority. Seale said the local governments would be able to save at least $2 million to $3 million by getting a lower interest on the bonds.

The board gave its approval for the state bond bank to start the process to sell an additional $500 million for the two government units in Southern Nevada for more improvements to the water system.