The banks will soon be forced by law to pay a minimum of 80% of your mortgage interest if you have a home equity line of credit, the Department of Housing and Urban Development (HUD) announced Wednesday.
In the meantime, the government is looking at ways to make it easier for people to get the mortgages they need to pay their bills, including a program to make loans more affordable for people who qualify.
For people with mortgages in good standing, the mortgage payment can be reduced by the amount of time they have to pay the loan, up to two years.
The program is part of the National Housing Trust Fund, which is funded by Congress.
The government can waive that rule if it thinks it can save money, according to HUD.
It will also be possible for people with loans in bad standing to get them back with the government, the agency said.
It has no details on how that program will work yet.
The agency also announced it is considering the idea of making homeownership a prerequisite for the ability to get a mortgage, and could even extend the deadline for qualifying loans.
That could potentially affect people who are able to buy homes but need help getting them built.
For example, if you live in a rental property and are in the midst of refinancing, you may have to wait longer than the usual three years for your mortgage to be forgiven, said David Poulson, director of housing and economic development for HUD.
The program is not the only effort the government has to offer to help low-income borrowers.
It’s also trying to improve the chances that low-cost, government-backed mortgages will be approved in the future, according, and is also working on efforts to get more people into the mortgage-purchase program.
But the new program will be one of the first steps the government will take to try to address the problem of foreclosures and foreclosure-related bankruptcies, said Linda B. Smith, the deputy assistant secretary for housing and urban development, in a statement.
It’s important that the federal government continues to work with state and local governments to help address these challenges, she said.