Housing affordability remains a central focus for both the federal government and the mortgage lending community, with new initiatives launched this spring aimed at reducing the costs associated with purchasing a home. These efforts align with the White House’s recent activities following President Biden’s State of the Union address, where affordable housing access was emphasized as a priority.
One of the significant federal initiatives comes from the Department of Housing and Urban Development (HUD). On May 15, HUD announced plans to modernize the Home Investment Partnerships Program, which provides flexible block grants to states and local governments. These grants help homebuyers with down payment assistance, closing costs, and other expenses. The updated program aims to strengthen homeownership activities, making it easier for low-income individuals and families to purchase or rehabilitate homes. A coalition of housing groups, including the Mortgage Bankers Association and the National Association of Realtors, supports these updates, advocating for increased funding to $5 billion and improvements to the program.
In the private sector, Arrive Home has introduced its Earned Equity Program, designed for consumers who cannot qualify for traditional mortgages. This program allows participants to enter into a long-term purchase contract with monthly payments managed by a 10-year lease agreement. The goal is for participants to eventually buy or assume ownership of the property. According to Arrive Home CEO Matt Pettit, this program offers a vital alternative for responsible consumers who lack access to conventional credit solutions, helping them achieve homeownership.
Arrive Home’s Earned Equity Program is gaining significant interest from correspondent lending partners, highlighting its potential impact in the affordable housing sector. President Tai Christensen noted that this initiative represents a major step forward in broadening the company’s offerings beyond down payment assistance, solidifying Arrive Home’s leadership in affordable housing solutions.
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