State allocates $40 million for first-time mortgage loans

Friday, June 25, 1999 | 11:42 a.m.

SUN CAPITAL BUREAU

CARSON CITY -- The state Board of Finance Thursday approved the issuance of $40 million in single family mortgage bond for money to loan first-time homebuyers.

Lon DeWeese, chief financial officer for the state Housing Division, said that the $60 million in bonds issued earlier this year is already used up.

This money will finance about 340 loans at interest rates lower than normally available. For instance, DeWeese said if the bonds were sold Thursday, the interest rate would be 6.75 percent for the borrower compared to 7.70 percent on the open market.

But he said the bonds won't be sold for several weeks. For this year, the interest rate in the state's loan program has been close to 1 percent below the open market.

A family of one or two with an income up to $51,700 would qualify for a loan.

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