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FHA’s New Plan Means More Credit Available to Borrowers

The Federal Housing Agency is taking steps to expand access to mortgage credit for underserved borrowers.

Department of Housing and Urban Development Secretary Shaun Donovan told a gathering of the National Association on Realtors May 13 that lending to potential buyers with lower credit scores has fallen dramatically in recent years, and announced a plan for greater consumer access to credit, through a new FHA housing counseling program that will launch later this year.

The four-year, two-phase pilot program, called Homeowners Armed With Knowledge or HAWK, will offer a 50 basis point reduction in the upfront mortgage insurance premium and a 10 basis point reduction in the annual premium at the time of loan origination to first-time homebuyers who complete the program.

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About Liz Lichtenberger

Liz is the special projects editor for Hardware Retailing magazine. She reports on news and trends, visits retailers, and attends industry events. She graduated from Xavier University, where she earned a degree in English and Spanish and was a member of the swim team. Liz is a Louisville, Kentucky, native who lives in Indianapolis with her husband and two children. She enjoys swimming, reading, doing home improvement projects around her house and cheering on her two favorite basketball teams, the Kentucky Wildcats and the Xavier Musketeers.

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