HFAs Could Be Model for Low Income Lending

Posted To: MND NewsWire

Homeownership has barely budged off the historic lows reached during the Great Recession and its aftermath. The housing industry has been struggling to understand why this phenomenon has continued even as the economy recovered, and more households are being formed. Many potential first-time homebuyers, especially Millennials have reported on the hurdles they must overcome to buy, including the difficulty of saving for a downpayment and for many a large burden of debt, especially student loan debt. Fannie Mae says the financial barriers are even higher for low-to-moderate income (LMI) individuals and even when they do purchase, they are often at higher risk of default due to unaffordable mortgage terms , higher loan-to-value ratios, and fragile household balance sheets. The company commissioned...(read more)

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