McLEAN, Va. – In what marks the first installment on FreddieMac's commitment to fund up to $1 billion in below-market ratemortgages for storm recovery in Mississippi and Louisiana, thehousing Government Sponsored Enterprise announced it is making $40million available in low-cost mortgages to residents in Mississippiwho either lost their homes or whose homes suffered major damage asa result of last year's devastating Hurricane Katrina.Specifically, Freddie Mac is purchasing $40 million of MississippiHome Corporation (MHC) bonds that will be used to finance mortgageswith a 5.61% interest rate for an estimated 350 borrowers. FreddieMac is buying the bonds at a price that will enable MHC to makeavailable an additional $1.2 million to cover three points of downpayment or closing cost assistance, which works out to an estimated$3,000 per borrowers. Qualified borrowers can buy or repair homesin a federally designated Katrina disaster area. Borrowers can alsouse the loans to buy a house in a different area if they had amortgage on a principal residence in a storm disaster area as ofAug. 28, the day before Katrina hit. Mississippi Gov. Haley Barboursaid the state “is grateful to Freddie Mac and Mississippi HomeCorporation for this welcome injection of affordable mortgagecredit to help the victims of Hurricane Katrina rebuild their livesand livelihoods.”