Possibility of Increased Buyer Eligibility for FHA Loans

An agreement made December 13, 2007 in the Senate would result in hundreds of thousands of under-privileged buyers, such as those of moderate income and minorities, becoming eligible for federally insured low-rate, low-down payment mortgages. According to a December 14, 2007 article in The Washington Post, the government hopes to decrease traction on subprime loans, which place homeowners in danger of not meeting their payment requirements and has only created more stress in the current mortgage crisis. The agreement made by the senate would lower the down payment requirement to 1.5% and allow the FHA to insure mortgages up to $417,000, resulting in significant expansion on the FHA’s current mortgage insurance program and increased aid for under-privileged homebuyers or homebuyers with tarnished credit to obtain a low-interest loan.

**To read the complete article on this news break, please visit http://www.washingtonpost.com/wp-dyn/content/article/2007/12/13/AR2007121301845.html

$60 Million Awarded by HUD to Aid Job Seeking Individuals

Funding by HUD in the form of $59.1 million awarded on December 12, 2007, is intended to make families self-sufficient through employment. HUD plans to distribute this sum between hundreds of public housing agencies (PHAs) nationwide in order to aid low-income individuals with job training and placement. Many families have already benefited from PHAs by becoming homeowners or debt-free. The funding is provided through HUD’s Family Self-Sufficiency (FSS) Program, which is a muti-faceted effort of communities, welfare agencies, schools, businesses, and other local partners. The PHAs, along with the combined aforementioned community effort, work to provide families the resources they need to find and maintain a job. Participants who succeed in an FSS program have the advantage of gained leverage for benefits such as making a down payment on a home, paying off debts or educational expenses, and starting a business, to name a few.

**For more information on HUD’s FSS Program and the recent funding, please visit http://www.hud.gov/news/release.cfm?content=pr07-180.cfm

Shortfall Predicted in Louisiana’s Road Home Program, $3 Billion Allocated to Fill Gap

According to HUD, The Bush Administration has recently allocated $3 billion to help compensate homeowners in the state of Louisiana. The Road Home Program is designed to help homeowners gain reassurance that they will be compensated for their losses in the wake of Hurricanes Katrina and Rita. The Road Home plan was designed and administered by the state, but fell into the danger zone of depleted and inadequate funds. The recently allocated $3 billion, in combination with the $1 billion additional federal funds that are anticipated to help the state fill the gap, will allow the Road Home Program to serve all applicants in the state of Louisiana.

**For more information regarding this development, please visit http://www.hud.gov/news/release.cfm?content=pr07-179.cfm