Those who are living or wanting to purchase a home in low-income, high-minority and disaster-impacted census tracts can have access to the best mortgage deals from the U.S. government programs.
According to The Mortgage Reports, the government has expanded its loan assistance programs to consumers based only on where they live. So regardless of whether the homebuyer belongs to low-income household or a member of a minority population, he can still be eligible if he lives in the specific area of a pre-approved neighborhood.
This is through the census tract which maps out and analyzes populations including the percentage of minority population, median income and number of households below poverty line, and the number of housing units, among others. The Mortgage Reports said there are about 12 data points which can determine whether a homebuyer is eligible for mortgage finance assistance.
For instance, if the homebuyer is residing or planning to purchase a home in what considered as "low-income" census tract area, even if his income is actually "high," he is eligible for down payment assistance grants and access to special loan programs such as HomeReady. HomeReady mortgage allows homebuyers to make a down payment of just 3 percent.
Likewise, homeowners in "high-minority" census tract areas are given access to down payment assistant programs and special loan offers, even if he is not a member of minority.
Meanwhile, property owners in "disaster-impacted" census tract areas are given temporary access to government mortgage assistance grants provided that the area has been designated as "federal disaster" place. Disasters include major snowstorms during winter and/or wildfires and storms during summer. Homeowners who want to take advantage of the census tract disaster designation must act quickly as the offer is only available for a limited time.
The use of U.S. census tract is part of the government's initiative to promote homeownership which it has long believed to be good for the community. There are tens of thousands census tracts in the whole country.
