Federal House Loan ProgramsTuesday, June 24, 2014
The American Dream has always been based around the concept of hard work and home ownership. Due to tough economic times, many Americans have not had the opportunity to realize this dream. The U.S. mortgage industry has been hit hard in the recession of the 21st century. Fortunately, a slow recovery is on the way thanks to some great housing programs that are administered by the federal government. Of course, the private mortgage industry must also make some changes in order to adapt to a new economic landscape in America.
Home loans should be affordable to individuals that have relatively low incomes. The government has established various programs to provide incentives for lenders to give out mortgages to people that qualify. The Federal Housing Administration has created different laws that make it easy for hard working people to get approved for a mortgage. The requirements of qualifying for FHA home mortgages are not as strict compared to loans given out by big banks and other financial companies. At the same time, the corporate world is interested in capitalizing on the growing market of low interest rate mortgages that are given out to first time home buyers.
According to federal laws, large banks and financial companies cannot discriminate against low income people that apply for mortgages. Based on annual earnings, an appropriate APR must be offered to the applicants asking for a home loan. There are also refinancing programs available to help some homeowners retain possession of their properties. For example, HARP loans are designed to assist low income real estate owners to keep on making monthly payments in order to avoid foreclosure.
The Home Affordable Refinance Program can be used to modify mortgages by reducing the monthly payments along with interest rates. Some mortgages can also be completely changed in terms in order to give the burrowers an advantage. Members of the U.S. military might also use special mortgage offers that are available through programs like Veteran Affair loans. The government believes that service men and women deserve a chance to live a comfortable civilian life after returning from duties.