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Mortgage NewsState launches new 3.5 percent mortgage program
First-time West Virginia homebuyers have a chance to lock in unusually low mortgage rates under a new state program.
By Eric Eyre
The Charleston Gazette
CHARLESTON, W.Va. -- First-time West Virginia homebuyers have a chance to lock in unusually low mortgage rates under a new state program.
The West Virginia Housing Development Fund is offering 30-year, fixed-rate loans at 3.5 percent interest to low- and middle-income homebuyers who qualify for the program.
A $35 million bond issue will pay for the program. The money is expected to make about 280 loans available at the low interest rate.
"There's no place else in this country that has ever done this before," Gov. Joe Manchin said Tuesday during a press conference to announce the mortgage program. "This is going to make a big difference in a lot of people's lives."
The 3.5 percent rate will be offered to homebuyers on a first-come, first-served basis, said Joe Hatfield, director of the Housing Development Fund.
Area mortgage rates through banks and mortgage brokers were running at 4.5 percent for 30-year, fixed-rate loans this week. So, homebuyers who qualify for a 3.5 percent loan through the Housing Development Fund program would save about $125 a month in mortgage payments, Hatfield said.
The program also offers zero-percent interest loans to pay for closing costs and down payments.
The low interest rates will apply to new construction, existing houses and modular homes.
Income and home price limits vary by county.
Contact: The Mortgage Center 304-267-9040
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