The City Council has approved the sale of $58.4 million in bonds to help first-time buyers purchase single-family homes at below-market mortgage rates.
The bonds will provide mortgage money for 250 new and 167 existing homes. The loans will carry a fixed interest rate of 8.1% for 30 years.
Loans will be available to buyers with annual incomes of up to $54,000 if the home is in a targeted depressed area of downtown Pomona. If the home is outside the targeted area, the buyer's income can be no higher than $44,000. Mortgages will be available on homes up to $210,000 in the targeted area and up to $170,000 elsewhere.
First Interstate Mortgage Co. will act as lender. The city will receive a fee of $291,000 for arranging the financing through the bond sale but will not be obligated to repay the bonds if buyers default. The bonds will be secured by mortgages guaranteed by government agencies.