Is The Government Planning To Make Home Loans More Available?

housewarmingAccording to a recent Washington Post article this is exactly what the government is planning.  The housing market has been steadily improving for the past year but most of the benefits of the surge have been felt by people with high credit scores or investors paying cash.  President Obama’s administration is working to make home loans more available for people with weaker credit particularly young professionals.

How Will The Government Home Loan Program Work?

The government administration believes that easing up on mortgage standards will provide a needed boost to the economic recovery.  The plan is to get banks to lend to more borrowers by taking advantage of government backed programs like the Federal Housing Administration or FHA.  In Naples, many of our homes also qualify for USDA loans.  These two programs are wonderful for people who can afford the monthly payments but haven’t been able to save much of a downpayment.  FHA loans are available with 3.5% downpayment and with USDA no downpayment is required.  The Justice Department is being urged to provide assurances to banks that they will not face legal or financial problems if they make the riskier loans and then the people default.  The administration believes their new program will encourage the banks to lend to borrowers who have the ability to make the monthly payments but have not saved a large downpayment.  “If the only people who can get a loan have near perfect credit and are putting down 25 percent, you’re leaving out of the market an entire population of creditworthy folks, which constrains demand and slows the recovery,” says Jim Parrot, the former senior adviser on housing for the White House’s National Economic Council.

What Can You Do?

We have lenders in the Naples area who will approve mortgages for people with 3.5% downpayment or no down payment.  There are guidelines that have to be met but I know professionals who understand those guidelines and can help you get approved.  There are also loans available with 10% downpayment for condos that do not usually qualify for the FHA program.  The best way to start is to call me at 239-601-3174 or contact me so that I can help you find a mortgage broker who can tell you exactly what kind of mortgage you qualify for.  If you don’t qualify yet, they can help you by giving suggestions on things you can do to improve your credit so you can buy in the future.

Take a look at the wonderful homes and values we have available in the Naples area by starting your property search and you will be very excited about the possibilities available to you.  I am looking forward to helping you find your new home in Naples!

Remember it is always Toasty in Naples and you deserve your piece of Naples sunshine!

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