Thanks to a $50,000 grant from the V.I. Territorial Association of Realtors, first-time home buyers making their purchase through the V.I. Housing Finance Authority might be eligible for help with their closing costs.
“When you’re trying to buy a house, you need an extra $2,000, $3,000 or $4,000 for closing costs,” association president B.J. Harris said.
The funding comes from the National Association of Realtors. Harris said the local group’s goal is to make it easier for low- and middle-income residents to buy their own homes.
Particularly in tourism destinations like the Virgin Islands, it’s hard for such people to buy homes because prices are high, Harris said.
The Housing Finance Authority will make short-term closing-cost loans of as much as $5,000 with an interest rate of two percent. The loans will run for as long as five years.
“It’s pretty manageable,” Harris said.
Of that that percent, one percent will go to the Housing Finance Authority to cover its administrative costs. The other percent will go back into the fund so closing cost money will be available for future Housing Finance Authority customers.
“In light of these tough economic times and the rising cost of construction, it is necessary more than ever to leverage the resources to provide assistance for first time homeowners,” Housing Finance Authority Interim Executive Director Adrienne Williams said.
However, Williams said she hopes the fund will grow so other families can be helped.
Harris urged other organizations to develop similar programs with the Housing Finance Authority.
“We set it up so that employers, civic groups and others can help us grow the fund and have even more assistance available for their employees and members who are seeking decent, affordable housing,” Harris said.
While the agency has partnered with other organizations, Williams said this is the first time it’s done so when it comes to funding.
The grant from the National Realtors Association was a one-time event, but Harris said that if similar funding becomes available, the territorial association will apply.
The grant was presented June 18 at the organization’s annual meeting, held at the Palms at Pelican Cove. At the meeting, Harris, who owns St. John Properties, was named Realtor of the Year.
More information can be obtained by calling the Housing Finance Authority on St. Thomas at 777- 4432 or on St. Croix at 772-4432.
