Mortgage revenue bond

An HFA may raise money by issuing tax-exempt bonds and then use that money for qualifying home loans. Official tax material calls those qualified mortgage bonds. The borrower still has a mortgage. The bond is how the agency funded the program. Income, price, and recapture rules are current-authority values and are not listed.

IRS Topic 505 is PRIMARY for tax-exempt qualified mortgage bonds and the related subsidy context. The 24 CFR 266.5 HFA definition is supporting identity for the issuer type.

Bond-financed HFA mortgages are easy to treat as a generic cheap product. The page names the funding mechanism without publishing program thresholds.

• First-time home buyer
• State housing finance agency

This page is about the tax-exempt housing-finance mechanism that may fund some HFA mortgages, not a standalone consumer loan product. Income, purchase-price, and recapture rules are current-authority values and are not listed.