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WCDA Increases Purchase Price Limit for Affordable Housing Loans |
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Friday, 27 July 2007 |
Casper, Wyo – The board of directors of the Wyoming Community Development Authority (WCDA) approved a $32,000 increase in the purchase price limit on homes that would qualify for its affordable housing loans in the state. The increase was passed at WCDA’s July 25 board meeting and raised the limit from $205,000 to $237,000.
The unanimous vote came after a presentation by Gillette homebuilder Tom Lang of Lang Homes. Lang said many of the homes he is building currently are in the $250,000 price range but that he could lower the price of these homes by adjusting amenities in the homes such as cabinetry and carpet quality and by making air conditioning optional.
WCDA Chairman of the Board John Stoll of Laramie said he hopes Lang Homes’ approach will be adopted by other homebuilders in Wyoming. “It’s great that Lang came forward to work with WCDA to help solve the affordable housing problem in Wyoming. The purchase price limit increase on WCDA loans will make more homes available to Wyoming’s workers and their families,” said Stoll.
The new purchase price limit of $237,000 is effective immediately statewide.
Veterans Down Payment Program
In addition, WCDA’s board of directors unanimously approved a new Veterans Down Payment program, which establishes a loan program for down-payment assistance that matches a veteran’s own funding up to $4,000.
The new down payment will be combined with Congress’ passage of a veteran exception to the first-time homebuyer definition in Section 416 of the Tax Relief and Health Care Act of 2006. The exception allows a qualifying veteran and spouse to qualify under the Mortgage Revenue Bond program even if they had owned a home within the last three years. The exception effectively allows veterans to be considered as first-time homebuyers even if they have previously owned a home. Non-Profit Housing Program
At the board meeting, WCDA also unanimously approved $1 million in funding for a mortgage purchase program for nonprofit housing providers. The loans will be used by nonprofit housing organizations in the state to purchase private residences for use as group homes or for employee housing.
Loan funds will be provided at below market interest rates.
Loans will need to meet FHA 203(b) program requirements.
For more information, contact the Wyoming Community Development Authority at (307) 265-0603 or visit www.wyomingcda.com. About the Wyoming Community Development Authority CDA, widely recognized for its program offering low-interest loans and assistance to first-time homebuyers, has worked since its inception 30 years ago to promote home ownership and has assisted more than 45,000 people to achieve home ownership in Wyoming. Among its specific programs, WCDA offers down-payment assistance, interest rates at lower-than-conventional rates, and an energy-saver program that provides loan funds for cost-effective energy home improvements such as furnaces. |
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