A $30,000 loan to buy a house in the San Francisco Bay Area is an example of how affordable housing and fair housing can be achieved without government assistance.
The Federal Housing Finance Agency says the loan is intended to pay off the debt owed on a home purchased with federal funds and help to pay down a $300,000 mortgage.
“The purpose of this loan is to provide a homebuyer with the financial stability necessary to purchase a home with the help of Fannie Mae and Freddie Mac, which provide mortgages to low-income and first-time homebuyers,” according to a Fannie and Freddie statement.
It’s the first loan for a California homebuyership project in nearly 30 years.
The Fannie & Freddie Housing Finance Authority is in the process of applying for an extension of its loan.
In March 2018, Fannie said it would provide $300 million in additional funding to help pay down the $300-million loan.
It will not provide additional loans to Fannie’s portfolio, as it has in the past.
Critics of the program argue that the loan guarantees are insufficient.
The Fannie loan program has allowed millions of families to buy homes without facing foreclosure.
The loans are typically backed by government-backed bonds that have a fixed rate of return that can fluctuate with the economy.
Many of the homes built by the Fannie/Freddie program were bought in low-cost markets in which homeowners could avoid foreclosure.
But the program has also fueled a housing bubble and fueled speculation in distressed communities.
The Federal Reserve has said it is concerned about the risk that the bubble may burst.
Fannie said last week it will be reviewing the program’s ability to continue.
Read more at thehuffingtonpost.com