(BOISE) ) Idaho Housing and Finance Association could purchase $250,000 worth of home loan mortgages from Boise Valley Habitat for Humanity (BVHFH) over the next year, and up to $1 million statewide. IHFA officials met with BVHFH officials Friday to purchase the first Boise Valley HFH mortgage.

"IHFA will buy the home loans from Habitat for Humanity at a discounted rate," said John Sager, IHFA chief financial officer and vice president, Administration. "The loans will remain as zero-percent interest loans to the Habitat homeowners."

IHFA then owns and services those loans. There's an immediate benefit to BVHFH, because they can sell off those loans and put the sale proceeds into building homes for even more families.

"IHFA's primary purpose behind this effort is to help Habitat build more home owners," said Gerald Hunter, president and executive director.

Ken Nichols, executive director of the Boise Valley Habitat for Humanity, said that he envisions the agreement between the two agencies as just the first of many in Idaho. "Making this program available to the other 10 Habitat affiliates in Idaho will give them ready access to another $250,000 for land and infrastructure expenses," Nichols said.

"This will be a real shot in the arm," Nichols added, "to enable us to close future land purchases on a timely basis. In fact, we have a closing scheduled this week utilizing the proceeds from this first mortgage sale."

"With this arrangement as a backdrop, we could begin leveraging as we go, and creating a scenario wherein each successful deal would create funding for the next house-building opportunity," said Holland Williams, chairman of the board for BVHFH.

Contact: Ken Nichols, Boise Valley Habitat for Humanity executive director, 331-2916

###

The Idaho Housing and Finance Association, a financial services and housing organization, provides funding for affordable housing in Idaho communities where they are most needed and when it is economically feasible. IHFA uses no state funds or state employees to support its operations. For more information, visit our Web site at www.ihfa.org.