Tuesday, August 01, 2006
Contacts: Jason Gibbs, Office of the Gov.,
(802) 828-3333
John Fairbanks, VHFA, (802) 652-3424
GOV.
DOUGLAS, VHFA LAUNCH NEW $10 MILLION AFFORDABLE HOMEOWNERSHIP PROGRAM
Agency
partners offer new job-loss protection and low-cost mortgage insurance products
Burlington,
Vt. — Governor Jim Douglas
joined with Vermont Housing Finance Agency (VHFA) today to announce the
Agency’s new $10 million mortgage loan initiative to help consumers find affordable
homeownership, and the Agency also rolled out two new insurance products being
provided to VHFA borrowers by the Mortgage Guaranty Insurance Corporation
(MGIC).
The announcements were made at a press conference attended by the
Governor, VHFA Executive Director Sarah Carpenter
and MGIC Accounts Manager Jon Korpela. A detailed description of the new
programs is attached.
“Vermonters are still facing high housing costs, despite evidence
the housing market may not be as super-heated as in recent years,” Douglas said. “The concern over housing
affordability on the part of consumers, employers and the housing industry
remains high, which is why we still need the kind of creative and effective
thinking that goes into programs like the ones we’re announcing today.
Creating more affordable housing helps us create more and better paying jobs.”
Carpenter said the Agency’s new mortgage program—a 30-year,
fixed-rate mortgage with a 4.75% interest rate—will be offered to
qualified borrowers purchasing new homes in developments that have been
approved by the Agency. Approved housing developments will be located in
areas designated by communities for housing growth.
“This is another way of helping people realize their dream of
affordable homeownership,” Carpenter said. “We’ll be
working with Vermont’s
Neighborworks® Homeownership Centers to find potential customers and
provide home buying education. We feel this program also helps encourage
the development of affordable housing in areas where Vermont communities have decided they want
housing built.”
Korpela said MGIC has worked with VHFA to offer two new insurance
programs that should give VHFA borrowers new peace of mind.
The first is a job-loss protection benefit, offered at no cost to VHFA borrowers.
That product would provide a limited measure of protection against involuntary
unemployment. It would pay up to $2,000 per month for up to six months if
the involuntary unemployment occurs during the first two years of the loan.
The second product is low-cost mortgage insurance to qualified
borrowers that carries a premium that is approximately 35 percent below
conventional programs.
"MGIC
understands the important role that homeownership plays in the American dream,
Korpela said. “MGIC has been helping make the dream of
homeownership a reality for nearly 50 years, and we are pleased to partner with
VHFA to bring affordable home loan options to the people of Vermont.
“Through these programs, qualifying VHFA borrowers can save as
much as $100 per month on their mortgage payments,” Korpela said. “And
Job Loss Protection helps safeguard borrowers against losing their homes if
they become involuntarily unemployed or disabled."
Carpenter said the new insurance products are another way VHFA works
with its partners to offer more and better options for consumers.
“Our Agency and our partners are focused on providing the best
service we can to consumers,” she said. “Any time we can
offer a new product or service like this, consumers win.”
###
Jason Gibbs
Governor’s
Communications Director
109
State Street ¨ The Pavilion ¨ Montpelier,
VT 05609-0101 ¨ www.vermont.gov/governor
Telephone: 802.828.3333 ¨ Fax: 802.828.3339 ¨ TDD: 802.828.3345