The governor of West Virginia, Joe Manchin, announced the implementation of a groundbreaking mortgage program that includes a 30 year fixed rate mortgage with a ridiculously low mortgage rate of 3.5 percent.
In addition to this great mortgage rate the program also has zero percent down payment and closing assistance loans. The program, which is going to be run by the West Virginia Housing Development Fund, is funded by a $35 million dollar bond issue.
The program was designed for first time home buyers with low to middle level incomes. Joe Hatfield, the Executive Director of the Housing Development fund said, “We are extremely pleased with this interest rate and realize that it is a once-in-a-lifetime opportunity for 280 qualify West Virginia families who wish to purchase a home…”
The program is available throughout the entire state, but in 20 specific counties it will only be available to first time home buyers.
If this program is successful and helps bolster West Virginia’s housing market it will be interesting to see if other states follow suit and attempt to develop similar funding projects. It is nice to see a state taking matters into their own hands and employing innovative techniques in an attempt to speed up recovery in the housing market.
Do you think other states will attempt to implement similar programs? Let us know how you feel about West Virginia’s new housing strategy in the comments section below.
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Kyle
August 1, 2010 @ 5:27 pm
Does anyone know what they base the income limits on? How do you know what you are making yearly if your spouse just started an hourly job?
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