Little-known program helps homebuyers

MANATEE — A little-known agency is looking for some prospective homebuyers in Manatee County who need to borrow money.

Using proceeds from a $16.6 million bond issue, the Housing Finance Authority of Manatee County said Wednesday it wants to help qualifying residents finance their home purchases.

The authority is offering low-interest and low-cost mortgage loans through participating lenders, and down-payment assistance to buyers who meet income and other guidelines.

“It can help a lot of people afford to buy a home who otherwise might not be able to buy a home,” said Pete Minarich of Real Estate Mortgage Network Inc., one of the participating lenders.

That is the mission of the authority, which was created in 1979 to alleviate Manatee’s shortage of affordable housing. The non-profit authority issues revenue bonds, uses the proceeds to underwrite mortgage loans, and applies borrowers’ monthly mortgage payments toward repaying the bonds.

“The authority’s helped a lot of people through the years,” said Rich Pierro, its chairman. “I don’t know the exact number, but it’s hundreds and hundreds of people, I’m sure.”

Under the program, authority bond money is used to back a first mortgage for the purchase amount. Those are 30-year, fixed loans with a 5 percent interest rate, no origination fees and no documentary tax, Pierro said.

The authority also offers down-payment assistance of up to 4 percent of the purchase price through a no-payment, no-interest second mortgage. If the borrower meets certain criteria after nine years, the second loan is forgiven.

To qualify, a buyer’s household income cannot exceed $62,300 for a one- or two-person household, or $71,645 for households of three or more people. The borrower also must have a minimum FICO credit score of 600 and not have owned a home in the previous three years.

Also, the home being purchased must be in Manatee County and not be bought for more than $272,195.

For more information about the program, contact Minarich at 782-2077; George Wilkerson of Universal American Mortgage Co. at 720-1510; or Gayle Goodfriend (782-3701),Lisa Hattan (358-1789) or Ken Wagner (739-7023) of Branch Banking & Trust Co.