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State Bond Loan

State bond loans are paid out by using mortgage revenue bonds (MRBs). MRBs are used by local housing programs to spur first-time homebuyers to purchase in their area by locking people in at below-market interest rates.

Benefits of state bond loans

The primary benefit of getting a state bond loan is that borrowers are able to get an interest rate that can be half as much as the market interest rate. Here are some of the clear benefits of getting locked in at a lower interest rate:

  • Here are a few examples of conventional loans.
  • Lowers the total costs of a home, over time
  • Allows for lower monthly payments
  • Enables homebuyers to purchase higher value homes

The exact amount that your interest rate will lower is dependent on the specific housing finance agency (HFA) or state program. Different fees are in place, as well, depending on the state or program.

Who qualifies for a state bond loan?

There are several major criteria that must be met before a homebuyer qualifies for a state bond loan. These requirements all vary, depending on the specific state or program where the loan is issued. Here are some of the requirements for individuals looking to get a state bond loan:

  • Must not have owned a home for a specific amount of time (usually three years)
  • Income requirements must be met by the homebuyer
  • The home must be within a certain value range
  • The home that is being purchased must be your primary residence (this is a consistent requirement, everywhere).

For consumer support and inquiries please contact our Consumer Solutions Dept. at 1 (866) 508-5515 or by email to