FHFA’s New Goals Make Home Buying Easier For Low-Income Families

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To make home buying more affordable for low-income families, FHFA sets new financing goals.

Fannie Mae and Freddie Mac have worked their way into common vernacular, but that doesn’t mean many people understand how they work. When they were bailed out in 2008, the federal government started overseeing them through the Federal Housing Finance Agency.

This agency periodically sets new goals for these finance giants, driving them to best serve the American consumer and keep the national housing market stable and growing.

They just released the newest set of these goals, and they emphasize making homeownership affordable to Americans of every income level. Particularly, the FHFA is mandating the Fannie Mae and Freddie Mac back more financing to low-income families. By 2017, they want to see these types of mortgages make up 24 percent of these finance firms’ business.

This is only a slight increase from the benchmark of 23 percent in 2014, but even a single percentage point change makes a world of difference to the low-income families who will now be able to get the financing they need to become homeowners in the next two years.

The FHFA also wants to lend a hand to low-income families who already own, and has ruled that more of Fannie Mae and Freddie Mac’s refinancing purchases should be made up of low-income refinances.

Ultimately, these changes should all make housing credit more accessible to more Americans, helping more families attain the American dream of homeownership in the coming years.

Just like the FHFA, Avis Lending is dedicated to helping families of all income levels bring their dream of owning a home to life. To learn more about how affordable homeownership can be, contact our teams in Lahaina, Hawaii or Irvine, California today!

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