Several programs sponsored by the national government offer a variety of financing plans to help make homeownership affordable to more Americans. Many of these programs specifically target. Some mortgage programs associate with other governmental agencies, lending institutions and community nonprofit organizations to help make the dream of owning a home come true for more families across the country.

Native Americans

The U.S. Department of Housing and Urban Development’s (HUD) Office of Native American Programs offers housing aid for Native American families (see Resources). The goal of these programs is to make sure that low-income Native Americans can obtain affordable and secure housing and can be found opportunities for homeownership. Income-eligible American Indian, Alaska Native and Native Hawaiian families are able to apply for the cheap housing opportunities these programs offer.

Fannie Mae

Fannie Mae offers mortgage programs intended to help individuals and families with low to moderate incomes. Lenders offer mortgage choices which may help minority applicants manage and be eligible for a mortgage loan (see Resources). A few of the advantages of these loan plans comprise lower closure costs, lower down payment requirements, credit opportunities for those who have very little credit history or significantly less than perfect credit, in addition to a number of repayment choices. Fannie Mae is active in the communities it serves and works closely with other organizations to help make sure that more people will get mortgages to buy their own homes.

FHA Loans

The Federal Housing Administration offers loan programs which may help. Folks don’t need to have a high credit score to be eligible for an FHA-guaranteed loan as it is simpler to qualify than when searching for a traditional home mortgage . Another advantage of applying for an FHA loan is that approved lenders require a lower down payment, no more than 3 percent, according to HUD. This makes it possible for people that are able to afford a mortgage but who don’t have enough cash to pay a higher down payment to still be able to buy a house. Interest rates will also be lower.

Fair Lending Enforcement Program

The Fair Lending Enforcement Program is a government program that’s used to make sure mortgage lenders follow the Fair Housing Act and Equal Credit Opportunity Act. Under these acts, the legislation prohibits unfair lending practices, as lenders may not discriminate against a loan applicant according to age, sex, race or other factors. The U.S. Department of Justice reports that more minority families have become homeowners because the introduction of these acts more than 25 years ago.

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