Existing law authorizes the Housing Division of the Department of Business and Industry to enter into instruments, agreements and other transactions for certain purposes, including: (1) reducing or modifying the amount or duration of any payment, interest rate, spread or similar risk; and (2) lowering the cost of borrowing when used in combination with the issuance or carrying of bonds or investments. (NRS 319.167) Section 1 of this bill requires the Division to establish a pilot program for certain eligible families, which is defined to include certain single persons or a person and his or her spouse, to buy down the interest rate of a mortgage loan for an owner-occupied residence for such an eligible family in this State. Section 1 requires the eligible family to: (1) have obtained or be in the process of obtaining a mortgage loan on a residence for the eligible family; (2) qualify as a first-time homebuyer; (3) with certain exceptions, have a household income of not more than 160 percent of the median income for the county in this State in which the residence is located; and (4) meet certain underwriting criteria. Section 1 further provides that an eligible family may apply to the Division to obtain a waiver of the household income requirement under certain circumstances.
Section 2 of this bill makes an appropriation to the Division for the purpose of establishing and carrying out the pilot program.