4.7.1.3 Single-Family Mortgage Revenue Bonds

Single family mortgage revenue bonds are bonds, the proceeds of which are loaned to home buyers as acquisition financing for an owner occupied personal residence. Except for homes in federally designated “targeted areas,” the home buyers must be first time home buyers. Borrower family income and the purchase price of the home must satisfy the requirements of the Code. Single family housing bonds are also subject to special arbitrage restrictions. See Section 3.3.8, Single-Family Mortgage Revenue Bonds. The Code also treats certain bonds that are issued by a state to provide home mortgage financing for veterans to be treated as qualified private activity bonds.