What government resources are available for home buyers?

A number of government-sponsored and -supported organizations offer a plethora of resources, opportunities, and programs for home buyers, particularly first-time buyers and those that fall into very specific categories, like veterans, who have access to Veteran’s Administration mortgage programs. Programs developed by community development departments (at the local level) and the Department of Housing and Community Affairs (at the state level) assist home buyers with flexible lending programs; housing options; and other resources, such as counseling. At the national level, in December 2003 President George W. Bush signed into law the American Dream Downpayment Initiative, which is expected to help more Americans enjoy greater access to more housing opportunities. The legislation will provide an average of $5,000 in grants to approximately 40,000 lower-income families in 2004 and 2005 to help them pay down-payment and closing costs on their first homes. Grants are made to state and local governments through the U.S. Department of Housing and Urban Development’s HOME Investment Partnership program. The program launched in spring 2004 and information about it is available at HUD’s Web site: www.hud.gov.
Through the Fair and Accurate Credit Transactions Act of 2003, the government is also helping individuals with credit-reporting issues. Under this legislation, consumers will receive one free annual credit report; full disclosure of their numerical credit score and the factors influencing that score; notice of any negative impact on their credit score caused by multiple shopping inquiries; notification when negative information is added to their credit files; prompt investigation and correction of inaccurate credit information; and new tools to combat identity theft such as placing a fraud alert in their credit file. The legislation also calls for federal regulators to conduct a study of the effects of consumers’ credit scores and credit-based insurance scores on the availability and affordability of homeowners insurance. The three most popular homebuyer programs offered by or supported by the government are Veterans Administration Loan Program, Fannie Mae’s Community Home Buyer’s Program, and FHA loans.