Yesterday it was announced that President Obama intends to help people get home loans who have “weaker credit” as a way to help improve the rates of homeownership. According to the Washington Post:
The Obama administration is engaged in a broad push to make more home loans available to people with weaker credit, an effort that officials say will help power the economic recovery but that skeptics say could open the door to the risky lending that caused the housing crash in the first place.
President Obama’s economic advisers and outside experts say the nation’s much-celebrated housing rebound is leaving too many people behind, including young people looking to buy their first homes and individuals with credit records weakened by the recession.
If you have been through a foreclosure or a short sale, chances are that you are someone who may currently have “weaker credit” and the administration is making an effort to help you buy a home again after such an event.
More from the article:
Obama pledged in his State of the Union address to do more to make sure more Americans can enjoy the benefits of the housing recovery, but critics say encouraging banks to lend as broadly as the administration hopes will sow the seeds of another housing disaster and endanger taxpayer dollars.
“If that were to come to pass, that would open the floodgates to highly excessive risk and would send us right back on the same path we were just trying to recover from,” said Ed Pinto, a resident fellow at the American Enterprise Institute and former top executive at mortgage giant Fannie Mae.
Administration officials say they are looking only to allay unnecessary hesitation among banks and encourage safe lending to borrowers who have the financial wherewithal to pay.
“There’s always a tension that you have to take seriously between providing clarity and rules of the road and not giving any opportunity to restart the kind of irresponsible lending that we saw in the mid-2000s,” said a senior administration official who was not authorized to speak on the record.
Whether or not it is good long term or bad long term to help people who have weaker credit buy a home, one thing is clear: the Obama administration is going to work with banks to make it easier for people to buy homes again.
If you are interested in getting approved for a mortgage after a foreclosure, short sale or other financial hardship – the best thing to do is speak with multiple lenders. Each lender will have slightly different requirements and will need different information. Speak with a lender who specializes in helping people in your situation by submitting your information below. Getting started is easy and fast – and you possibly can qualify for the mortgage on the new home of your dreams much sooner than you may now think! Get started and submit your information below.
