• Housing bonds are debt securities, a type of municipal income bond issued by state or local governments to raise funds for affordable housing development projects.

  • Housing bonds provide the government with cheap financing and tax advantages for lenders, especially those in the upper tax brackets.
  • Mortgage loans provided through housing bonds are limited to first-time homebuyers who earn no more than the area’s median income, and the home purchase price is capped at 90% of the area’s median purchase price.