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 borrowers to buy down the interest rate of a 30-year fixed-rate mortgage loan for an owner-occupied residence for such an eligible borrower in this State. Section 1 requires the eligible borrower to: (1) be in the process of obtaining his or her first mortgage loan on a residence for the eligible borrower; (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 authorizes the Division to establish a process for an eligible borrower to obtain a waiver of the household income requirement.
Section 2 of this bill makes an appropriation to the Division for the purpose of establishing and carrying out the pilot program.