Fannie Mae has agreed to purchase $25 million of bonds from the West Virginia Housing Development Fund.

The purchase would make mortgages available to more than 450 families in the state at below-market interest rates.

The bond proceeds will fund loans through local mortgage lenders at an interest rate of 6.99%. The loans will be available on a first-come, first- served basis to low- and moderate-income households.

Separately Fannie Mae, formally the Federal National Mortgage Association, said nearly 3,500 families had obtained mortgages during the first year of HouseSeattle, a five-year, $1.5 billion investment plan announced last October.

Fannie Mae also announced new housing initiatives for Seattle, including two mortgage products offering low down payments; employer-assisted housing for Boeing Co. employees; new flexibily for rehabilitation loans; and loans for small multifamily housing developments.

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