FHA, Foreclosures, and the White House

FHA, MN Foreclosures, and the White House

As I catch up on Friday's news headlines, I notice the United States Senate passes a foreclosure bill that will encourage Minnesota Home Buyers to buy a foreclosed home in Minneapolis/St. Paul real estate inventory. Under the new plan, Minnesota Home Buyers would be eligible to claim a $7,000 tax credit for the purchase of foreclosed homes.

The Bush administration countered those plans with its own proposal. It would target existing Minnesota Homeowners already facing large rate hikes or foreclosure in the future. The Bush administration is calling for the Federal Housing Agency (FHA) to expand it's loans programs to allow more MN homeowners the ability to refinance.

Although there are a variety of proposals coming from the Federal government, we should all try to pitch in and offer thoughts/suggestions on the local level. Specifically, Minnesota Home Buyers should be active within their community, such as attending city board meetings, community gatherings, and neighborhood meetings. We all need to raise awareness about the issues facing communities that are disrupted by MN foreclosures.

We need to continue to spread the word about housing programs designed to help Minnesota Home Buyers, such as the Nehemiah Program which offers first time home buyers down payment assistance. The Nehemiah Program provides gift funds to qualified homebuyers who purchase participating homes using an eligible loan program. The Nehemiah program is approved to provide gift funds by the FHA (Federal Housing Agency).

Also, Minnesota Home Buyers should look at the Minneapolis Advantage loan program which is a downpayment and closing cost assistance program to help rebuild the housing market in key neighborhoods that have experienced higher than normal levels of mortgage foreclosures and a rapid decrease in home ownership. The program offers a $10,000 zero-percent interest loan that is forgivable over five years to anyone buying a home in which they will live in these key neighborhoods.

I hope this sheds some light on a our troubled, but recovering housing crisis. Also, please appreciate the warm sunlight and green grass in your neighborhood, because MN still has snow on the ground and experiencing multiple forms of precipitation on this Friday morning.

If you have any questions, comments, or suggestions, then please Scott Teigland @ scott@uptownfinancial.com or 612.919.2119.