Requirements for Housing Bonds

Housing bond mortgages are only available to first-time homeowners earning less than the regional median income. Furthermore, the price of a property acquired with a housing bond mortgage is capped at 90% of the average purchase price in the region. Housing bonds are generally low-interest bonds that can be issued as a fixed-rate or variable-rate demand obligation (VRDO). Bondholders are paid principle and interest from pledged mortgage repayments and investment returns. Borrower mortgage repayments are collected by the housing bond trustee, who invests the cash in short-term assets until the scheduled time to pay interest.