Understanding Mortgages In U.S. Housing Market

Part of the American dream includes home ownership. Even during tough economic times, U.S. citizens still have options when it comes to financing a house with a mortgage. The housing market often fluctuates but there are some government sponsored programs that provide some stability. For example, the Home Affordable Refinance Program (HARP) is designed to alleviate some financial burdens of paying expensive loans. Monthly payments can be lowered with this type of financial package that is available for the working and middle classes.



Mortgage lenders often try to educate consumers about all of the options that are on the table in order to prevent borrowers from getting evicted. Foreclosure is not something that lenders such as banks are always looking forward to. The government has made significant strides in trying to keep mortgage borrowers in their own homes. Low income individuals might qualify for federally sponsored insurance programs that secure mortgages. Even if borrowers fall behind on monthly payments, there are still ways to catch up and avoid eviction. Lenders are guaranteed to receive compensation from the government up to a maximum amount that results from missed or late payments. FHA insured loans are therefore the most viable options for borrowers who have unstable jobs or large debt. Low income individuals can apply for a house loan that's backed up by the government.

Mortgage brokers are required by law to ask home buyers about military experience. Veterans who have served in the United States armed forces are eligible to receive special loans that are sponsored by the Veterans Affairs organization. VA mortgages eliminate any down payments that might add up to tens of thousands of dollars. Additionally, low APRs are given to veterans who take out mortgages with fixed or variable rates.

The Federal Housing Authority also prevents discrimination in the mortgage industry. Individuals who have experienced foreclosures before might still qualify for a new loan in order to finance a residential property. However, such high risk borrowers must prove that they have steady employment and other personal assets that can be used to make monthly mortgage payments on time.