Sale will allow people to invest locally and help Maine’s real estate market
AUGUSTA, ME – October 17, 2008 – (RealEstateRama) — Starting this week Maine investors will have an golden opportunity to purchase a secure investment – while helping Maine people and Maine’s economy.
An in-state network of brokers and financial institutions will begin selling MaineHousing’s highly rated bonds directly to Maine investors Friday. Major Wall Street firms usually sell MaineHousing’s tax-exempt revenue bonds to large national institutional investors.
“This is a great opportunity for Maine investors,” said MaineHousing Director Dale McCormick. “The interest that Maine people earn on our bonds is exempt from both state and federal income taxes, and from the Alternative Minimum Tax.”
MaineHousing’s bonds are rated Aa1/AA+ because of the agency’s documented track record, because it does not make sub-prime mortgages, and because of the low delinquency rate on its loans.
McCormick, who served as Maine State Treasurer for eight years before becoming MaineHousing Director, said the uncertainty on Wall Street is one reason that MaineHousing wants to market its bonds to in-state residents first.
“So many people are pulling out of the stock market there is a tremendous demand for in-state investments right now,” she said. “Plus, this really is an investment in Maine and in our people.”
McCormick described the pending bond sale as Maine investors purchasing Maine bonds to help Maine people buy Maine homes.
Investors benefit by purchasing secure MaineHousing tax-exempt bonds, while the revenue from the sale enables MaineHousing to continue its low-interest rate home mortgage program that is making loans to moderate-income first-time homebuyers at a rate of $1 million a day.
“Revenue from the sale will go towards helping Maine families buy their first home,” she said. “Ultimately, this sale will help Maine’s real estate industry and the overall economy of the state.”
Those interested in purchasing bonds for secure tax-exempt revenue – and as an investment in Maine’s future – should contact their bank or broker. If the bank or broker is not a member of MaineHousing’s selling group investors should call J.P. Morgan, MaineHousing’s senior manager for the bond sale.
The current brokers and banks selling MaineHousing bonds are listed at the agency’s website at www.mainehousing.org,