2008-88 APPROVING THE TRANSFER OF VOLUME CAP

Home Browse Search

, , /4SSISf 2��9 Homebuyer Assistance Affordable home ownership forfamilies Program Outline An innovative program sponsored by communities throughout the state that ofFers families the opportunity to buy their own home. The home buyer assistance feature of the Assist program provides families with funds to pay all or most of their closing � ; � � costs and down payment, enabling families with good credit but . little extra capital to buy their first home. Overview • Communities join together and issue tax-exempt single family bonds • Home rule communities contributes private activity bond volume cap � • Non-home rule communities apply for volume cap from the State • No financial contribution or commitment required from any participant • Any Illinois municipality can participate Description of Bond Issue • Tax-exempt bonds are issued using the combined volume cap of the communities • The bonds are sold at a premium, a price greater than their face amount • Proceeds of the bonds are used to make the home loans and the assistance • The bond premium supplies the extra funds to provide home buyer assistance • The bonds are not a debt of the municipalities or paid from any participating communities funds • The City of Aurora acts as issuer on behalf of all the communities • The bonds are secured by loans on homes purchased with Assist Loan Description • 30 year fixed rate loans • FHA/VA loans available • Assist pays 4.25% cash assistance to qualifying home buyers ■ 1.00% to lender as origination fee ■ 0.25% to lender as discount fee ■ 3.00% net to home buyer for closing • Loans are funded with proceeds of the bonds • Loan interest rate determined at bond closing • Loan interest rate below conventional loan rates as of bond closing Stern Brothers & Co.