Homebuyers Get Downpayment Grants on Coast

GULFPORT, MS - As Wall Street suffered another credit crisis failure Monday, the city of Gulfport rolled out a plan to give prospective homebuyers up to $50,000 in down payment assistance on a new home. Through the new program, dubbed Homeline, qualified homebuyers can use the funds to purchase a home built in 1980 or later within the city limits of Gulfport. New construction also qualifies. But the home must be in "good condition."

Despite the financial meltdown of Lehman Brothers, an investment bank strapped with giant losses on its mortgage holdings and squeezed by sinking real estate prices, city leaders say the $9 million homebuyer assistance program will help prop up the local housing market.

"This program is going to allow many people who normally wouldn't be able to afford a home to purchase one now," said Mike Necaise, the city's finance chief.

To qualify for Homeline, applicants must meet the household income qualifications, which are based on a sliding scale of total household income, set by the U.S. Department of Housing and Urban Development.

In addition, applicants must have enough credit to secure a first mortgage and complete a homebuyer education class.

"The CDBG funds will provide long-awaited and greatly deserved work force housing opportunities for low- and moderate-income citizens," Mayor Brent Warr said.