U.S. Rep. Darin LaHood, R-Ill., is co-leading bipartisan legislation aimed at helping more first-time and low- to moderate-income home buyers access lower-interest mortgages. The First-Time Homebuyer Affordability Act would expand the ability of state and local housing agencies to provide affordable mortgage financing.
The legislation would exempt qualified Mortgage Revenue Bonds from existing Private Activity Bond volume caps, which limit the amount of financing states can provide each year. Supporters say removing the cap would allow housing agencies to offer more below-market mortgage loans as home prices and borrowing costs continue to challenge prospective buyers.
The bill is supported by the Illinois Housing Development Authority and several national housing and financial organizations. IHDA Executive Director Kristin Faust said the legislation could allow the agency to significantly expand its assistance to first-time buyers. IHDA has helped more than 3,000 families purchase their first homes this year through down payment assistance programs.
