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HUD Archives: News Releases
HUD UNVEILS PLAN FOR 25,000 PUBLIC HOUSING FAMILIES TO BECOME HOMEOWNERS;
HUD will make grants to public housing authorities which partner with local non-profit groups, resident organizations, financial institutions, community development organizations and city agencies.
Eligible for these grants will be programs for job training; employment counseling and enhancement; entrepreneurship training; and pre- and post-sale homeownership counseling and training services.
By utilizing FHA mortgage insurance for loans, private lenders will be able to use more flexible underwriting practices and require lower downpayments for homes purchased by public housing families.
In addition, more affordable financing for home purchase and renovation can be made available through FHA's 203 (k) mortgage insurance program.
As part of the initiative, Ginnie Mae and the FHA are also educating private lenders and Ginnie Mae securities issuers about opportunities to finance local public housing homeownership programs.
Fannie Mae and Freddie Mac are committed to purchasing loans made to low-income homebuyers. HUD will work with the two government-sponsored enterprises to insure that, through this commitment, the goals of the public housing homeownership initiative are served.
HUD expects current public housing reform legislation to include provisions allowing non-profit groups to help with public housing sales programs. The legislation should also allow for the creation of a workable lease-purchase (rent-to-own) homeownership program and a time-limited Section 8 post-sale subsidy for low-income families buying existing public housing units.
Content Archived: January 20, 2009