5/9/1979 - Laserfiche WebLink

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it THE,NEXT MATTER BEFORE THE BOARD WAS THE HOUSING STUDY REPORT IN REGARD TO CREATION OF A HOUSING FINANCE AUTHORITY PRESENTED BY REPRESENTATIVES OF HOUGH & CO. GEORGE BLAND OF WILLIAM R. HOUGH & CO. DISCUSSED SKYROCKETING MORTGAGE INTEREST RATES AND STATED THAT THE OBJECTIVE OF THEIR STUDY IS TO REDUCE THE COST OF HOUSING FOR THOSE OF MODERATE, MIDDLE AND LOWER INCOME. HE PRESENTED THE FOLLOWING "DISCUSSION PAPERY EXPLAINING THEIR STUDY: DISCUSSION PAPER MAY 91979 Assumes 10% down payment and includes estimate for insurance and taxes 31 - BOOK $42,500 $433 377 56 $20,784 18,096 $ 2,688 40 PA-UF236 Basic Interest Rates FLORIDA HOUSING FINANCE AUTHORITY PROGRAM 1. Sell Bonds Est 7.40% (HFA) SUBJECT: Cost of Housing in Indian River County OBJECTIVE: To Reduce the Cost of Housing in Indian River County FOR WHOM: Middle, Moderate and Lesser Income Families WHY: So More Families Can Obtain Housing HOW: 1. Sell Tax Exempt Bonds (not a lien on any County funds or taxpayers) 2. Use Bond Moneys to Buy Mortgages $30,000 3. Use Mortgage Payments to Pay Bonds MAY 91979 Assumes 10% down payment and includes estimate for insurance and taxes 31 - BOOK $42,500 $433 377 56 $20,784 18,096 $ 2,688 40 PA-UF236 Basic Interest Rates 1. Sell Bonds Est 7.40% 2. Set HFA Mortgage Loan Rate Est 8.50% 3. Present Conventional Mortgage Loan Rates Est 10.50% RESULT: Savings of About 2% on Mortgage Interest Rate WHAT IS 2% IN DOLLARS? EXAMPLE 1. Cost of Home $30,000 $35,000 2. Monthly Mortgage Payments (30 years)* Conventional $305 $357 This Program (NFA) 266 311 Savings 39 46 3. Minimum Annual Income Required Conventional $14,640 $17,136 This Program (HFA) 12,768 14,928 Lesser Income Required To Qualify under HFA $ 1,872 $ 2,208 MAY 91979 Assumes 10% down payment and includes estimate for insurance and taxes 31 - BOOK $42,500 $433 377 56 $20,784 18,096 $ 2,688 40 PA-UF236