A state agency that helps Iowans with loans to buy their first home is lowering its interest rate. Iowa Finance Authority spokesman Steve Schuchmann says they’re cutting the rate for a 25 or 30-year mortgage by almost a half percentage point. Schuchmann says the cut in the rate is not related to the Federal Reserve’s cut in interest rates today. They’re able to offer below-market rates through the sale of bonds. Schuchmann says the rate is now 6.875 percent. He says their loans differ from most commercial lenders in another way. They don’t charge an origination fee, which is usually one-percent of the value of the loan. Schuchmann says those eligible for the low-interest loans must meet requirements, including being a first time homebuyer and meeting income guidelines. He says the program helped thousands of Iowans who otherwise may not have been able to afford a home.They helped approximately 12-hundred people win 75-million dollars in loans in 2000. Schuchmann says the income limits to qualify for the I-F-A loans aren’t as low as you might expect. He says you should surf to the I-F-A website at: www.ifahome.com, to see if you’re eligible.
Iowa's Radio News Network
