COLUMN: State program makes good use of tax dollars

One of the best uses of our tax dollars is the Housing Divi- sion of the Nevada Department of Business and Industry. The people who run the division are dedicated workers looking out for the best interest of Nevada residents.

Among its many duties, the division issues single-family bonds that generate funds for low- and moderate-income families buying their first homes. The division recently issued $13.963 million for qualified first-time home buyers. In 2000, bonds issued were valued at $93,766,634.

Betty Roark of the Southern Nevada office said the current bond offers loans at 6.19 percent and are typically three-quarters of a percent to 1 percent below market rate.

Most local mortgage companies are participating lenders for the loans. Prospective buyers are advised as to their eligibility for a loan, the maximum monthly payment and price of a home they can afford, and the funds needed for down payment and closing costs.

Home-buyer education programs are recommended and offered by the lenders. The classes address the mortgage process and what to expect after closing escrow, the responsibilities and benefits of homeownership, and may reduce the loan fees of those who complete the program.

Current guidelines for ownership are subject to change, but have caps of $138,884 on new homes and $139,990 on resales.

Eligible borrowers must have income that does not exceed the maximum limits: less than $53,600 for one or two people; $61,640 for three or more people. They must meet the underwriting criteria of the Federal Housing Administration, Veterans Administration, Private Mortgage Insurance or, in the absence of mortgage insurance, Fannie Mae. Borrowers must have assets that do not exceed 50 percent of the sales price of the home being purchased; have had no ownership interest in a home during the previous three years; and have not previously had a loan through the division's program.

Real Estate home