Millions of families have
found home ownership more affordable through the use of
Mortgage Revenue Bonds also known as Bond Money. The IRS
allows state and local governments to sell tax-exempt
bonds and use the proceeds to finance low-interest rate
mortgages for homebuyers. Investors that purchase
the bonds are willing to accept a lower interest rate
because the income is free from federal taxes. The
lower interest rate made possible by the tax-exemption
is passed on to home buyers in the form of a below
market interest rate. The lower interest rate
results in a lower monthly payment making home ownership
more affordable.
Bond Money has made
homeownership possible for more than 2.4 million
families, more than 100,000 every year. A typical
bond mortgage saves as much as $100 a month compared to
a traditional mortgage. That’s nearly a $40,000
savings over the life of the mortgage. Bond
programs may also provide down payment and closing cost
assistance.
