CHARLESTON, W.Va. - The West Virginia Housing Development Fund has launched a $10 million mortgage program that is not just for first-time homebuyers.
The "Movin' Up Home Loan Program" is available to first-time homebuyers and to homeowners who may have outgrown their current homes and want to move up to a larger house. The new program also may be attractive to homeowners who want to move to a home of greater value by folding down payment and closing cost assistance into the loan package.
Erica Boggess, the fund's acting executive director, said in a prepared statement, "Many qualified buyers want to take advantage of today's low interest rates and move up to a larger home, but lack equity. The Movin' Up Program is a perfect fit for these clients."
The program is intended to be self-sustaining. Housing fund spokesman George Gannon said principal and interest paid by mortgage recipients will be plowed back into the program.
The housing fund has set up a special toll-free phone number for queries about the Movin' Up program: 1-800-933-8511. Information also is posted on the housing fund's website. Go to www.wvhdf.com and click on the Movin' Up Program icon.
Of the $10 million used to start the program, Gannon said $6 million came from a construction loan West Virginia University Health Sciences paid off and $4 million came from a fund used to insure the housing agency's bonds.
The Movin' Up Program is for new purchases only. "We have other programs that can be used to refinance mortgages," Gannon said.
Since it was established in 1968, the housing fund has focused on providing financing for first-time homebuyers.
Over the years it has sold more than $3 billion in tax-exempt bonds to finance more than 113,000 housing units around the state.
Tax-free bonds have historically provided the fund with low-cost money that it turned into low-cost mortgages. But the Federal Reserve's recent policies have pushed commercial mortgage interest rates to near-record lows.