$24.5 Million Homebuyer Program to revitalize El Paso neighborhoods

EL PASO, January 20, 2010 – El Paso Housing Finance Corporation announces the issuance of $24.5 million in bonds on
Wednesday, Jan. 20. The bonds will be used to provide competitive mortgage financing and down payment assistance to low-to-moderate income home buyers in the El Paso community. The financing will help stimulate growth in the local economy and comes at a time when other projects, such as the relocation of military units to Fort Bliss as part of the Base Realignment and Closure (BRAC) process and revitalization of downtown El Paso, are being developed.
FirstSouthwest, El Paso Housing Finance Corporation’s financial advisor for more than 30 years, structured the transaction. The El Paso bond issue is the first local Housing Finance Corporation bond issuance in Texas since July 2007.

“With this new program we’ll be able to finance homes for more than 200 families and individuals in the El Paso community. The down payment assistance and low rate loans will provide a boost to borrowers and help keep the El Paso community vibrant and strong” said Susie Byrd, President of the El Paso Housing Finance Corporation and City Council Representative for District 2.

“The sale of these bonds will help many El Paso families realize their dream of home ownership,” said El Paso Mayor John Cook "That's why the work of the El Paso Housing Corporation is so important to the community."

Bond proceeds are now available to qualifying home buyers through one of the three participating lenders, Rocky Mountain Mortgage Company , GECU and Patriot Mortgage; all of which are local institutions . Thirty-year mortgage loans are offered at competitive fixed rates of 5.25% – 5.375% with attractive down payment and closing cost assistance programs. For example, on a $100,000 loan, qualified home buyers can receive $3,000 in financial assistance. This is a true grant of 3% of the loan amount and will not inflate the price of the home.

Information about eligibility for these loans can be obtained from participating mortgage lenders or from the El Paso Housing Finance Corporation. Interested borrowers should e-mail or call El Paso Housing Finance Corporation Executive Director Adrian Duran at duranax@elpasotexas.gov or 915-541-4476.