US President Joe Biden’s administration has announced plans to provide assistance to homeowners struggling to make mortgage payments. The plan is expected to help around 850,000 homeowners save an average of $800 per year.
The new plan, which is part of the Biden administration’s efforts to address the country’s housing crisis, will provide savings to homeowners who have Federal Housing Administration (FHA) loans. The FHA is a government-backed program that provides loans to first-time homebuyers and other qualified borrowers.
Under the new plan, the FHA will lower the annual mortgage insurance premiums that homeowners with FHA loans pay. The lower premiums will result in an average savings of $800 per year for eligible homeowners. The plan is expected to cost the government around $540 million per year.
The Biden administration hopes that the plan will help struggling homeowners stay in their homes and avoid foreclosure. The plan is part of a broader effort to address the country’s housing crisis, which has been exacerbated by the COVID-19 pandemic.
The new plan has been welcomed by housing advocates, who say that it will provide much-needed relief to homeowners struggling to make mortgage payments. However, some critics have raised concerns about the cost of the plan and its potential impact on the FHA’s financial stability.
Despite the concerns, the Biden administration is moving ahead with the plan, saying that it is a crucial step in helping to address the country’s housing crisis. The plan is just one of several initiatives that the administration is pursuing to address the issue, including efforts to increase affordable housing, expand access to credit, and address discriminatory housing practices.
The new plan is expected to provide significant relief to struggling homeowners, helping them stay in their homes and avoid foreclosure. The Biden administration hopes that the plan will be just the first step in its efforts to address the country’s housing crisis and provide relief to those in need.