Support for LAist comes from
Become a sponsor
Audience-funded nonprofit news
Donate
Stay Connected

LAist is part of Southern California Public Radio, a member-supported public media network.

Audience-funded nonprofit news
Listen
Donate
Podcasts Take Two
New fed rules make mortgages easier for first-time buyers
solid orange rectangular banner
()
Take Two Logo
Dec 10, 2014
New fed rules make mortgages easier for first-time buyers
This week the government released new plans to make buying a home easier.
History suggests there will be four more years of price increases and prices will go up another thirty-five percent before there is any sort of correction, according to the latest UCLA Anderson Forecast.
MORENO VALLEY, CA - AUGUST 25: Two vacant homes are for sale on August 25, 2008 in Moreno Valley, California. Sales of existing homes rose 3.1 percent in July as buyers rush to take advantage of plummeting property prices in regions hit hardest by the housing crises. Despite rising sales, the number of unsold properties hit an all-time high in hard-hit places like Moreno Valley in a market slump that could take decades to recover. Nearly 2.8 million U.S. households are expected to face foreclosure, give up their home to their lender, or sell their properties for less than their mortgage value by the end of next year. (Photo by David McNew/Getty Images)
(
David McNew/Getty Images
)

This week the government released new plans to make buying a home easier.

This week the government released new plans to make buying a home easier.

Now, under the proposal, first-time buyers could get a mortgage plan with as little as three percent down. That could increase home ownership. At least that's what the government is hoping.

But some worry that it could also increase the chances of defaults if the market takes a downturn.

Here to help us break it all down is Chris Thornberg, principal at Beacon Economics.