May 16, 2014
The FHA has announced a new program to help under served borrowers get better access to credit to buy a home. According to the FHA press release HUDNo14-048, and the Blueprint for Access pamphlet, a new program will help with credit counseling and savings on their mortgages as a result of attending that counseling.
“Today, the Federal Housing Administration (FHA) issued its ‘Blueprint for Access’ outlining the additional steps the agency is taking to expand access to credit for underserved borrowers. These steps include encouraging a broader use of housing counseling. This week, HUD will publish a notice in the Federal Register for the Homeowners Armed with Knowledge (HAWK) pilot program to further incorporate housing counseling into the home buying process for borrowers using FHA insured financing.”
The press release explains that under HAWK, “homebuyers will qualify for savings on their FHA-insured loans by completing HUD-approved housing counseling provided through independent nonprofit organizations that give people the tools they need to understand the rights and responsibilities of homeownership.”
That housing counseling is designed to improve an FHA borrower’s budget making skills and housing decisions. “In addition the Blueprint for Access includes enhancing FHA’s quality assurance efforts. Today HUD announced more information on FHA’s Quality Assurance Initiative, intended to provide greater clarity and transparency to FHA approved lenders to encourage lending to qualified borrowers across the credit spectrum.”
“This is a win for families, FHA, lenders, realtors and the overall market, which is why we are very excited about its potential impact, said Shaun Donovan, Secretary, U.S. Department of Housing and Urban Development. He was quoted in the press release saying, “We want to create an environment that encourages responsible behavior and provides clear rules of the road so lenders can originate loans without fear of unanticipated consequences. We want lenders to be able focus on the quality of their processes and lend to all qualified borrowers.”
We’ll explain the HAWK pilot program in an upcoming blog post.
Do you have questions about FHA home loans? Ask us in the comments section. You can get information about applying or getting pre-approved for an FHA loan at FHA.com, a private company and not a government website.
Joe Wallace has been specializing in military and personal finance topics since 1995. His work has appeared on Air Force Television News, The Pentagon Channel, ABC and a variety of print and online publications. He is a 13-year Air Force veteran and a member of the Air Force Public Affairs Alumni Association. He was Managing editor for www.valoans.com for (8) years and is currently the Associate Editor for FHANewsblog.com.
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