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Expertise in low down payment lending helps HFAs fill new gaps

Posted by: Leslie Black-Plumeau on 2/13/2014

Bloomberg_articleHome buyers across the nation with less than a 20 percent down payment are discovering that their state's housing finance agency (HFA) offers mortgages with the terms they need, according to a recent report from Bloomberg news.

HFAs in many states have seen the volumes of interested borrowers, many of whom are first-time home buyers, expand significantly during the past year, the article explained. "We believe that housing finance agencies will be able to play a bigger role in whatever the restructured mortgage market looks like in the future," said MassHousing Executive Director Tom Gleason who was interviewed for the article. "HFAs have already demonstrated that they're ready to step up to the plate to absorb the risk associated with low down payment borrowers,"  he continued. The growth in lending may also help bolster the housing recovery, which hasn't included many first-time buyers, the article concludes.

Like its counterparts in other states, Vermont Housing Finance Agency also serves low down payment borrowers.  Read more online about VHFA programs.