Rural housing bonds provide boost

A new $25 million bond program launched by the Nevada Rural Housing Authority could thaw the frozen market for buyers of manufactured housing in northeastern Nevada.

Manufactured units account for an estimated 30 percent of housing sales in some areas of northeastern Nevada, says Peter Kimmery, a loan officer with Home-Mortgage Resources Inc., which has offices in Reno and Meridian, Idaho.

But sales of those homes have slowed to a crawl because of tight financing.

The "Home at Last" bond program launched by Nevada Rural Housing Authority is open to first-time buyers and veterans for purchases of housing conventional or manufactured financed through FHA or Rural Housing Service loans. VA loans can't be used to purchase manufactured housing.

The bond program provides $4,500, which doesn't need to be repaid, to first-time purchasers of a home in Nevada communities with less than 100,000 population. Thirty-year loans carry a fixed rate of 5.357 percent. Alternatively, borrowers can opt out of the down payment assistance and borrow at a 4.875 percent fixed rate for 30 years.

Either way, purchasers who have a signed contract by April 30 and close their purchased by June 30 also may qualify for the $8,000 federal tax credit to first-time buyers.

"It doesn't get much better than that," Kimmery says.

He says easy financing for first-time home buyers is likely to help reduce pressures on tight rental markets in Elko and nearby communities.