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U.S. Home Loan Programs Boost Economic Growth

Darnell K. Souza
Senior Vice President
Branch Manager, Aiea Branch
Honolulu HomeLoans
Loan Originator ID 275748

When the U.S. economy goes through a major downturn such as the Great Depression and Great Recession, do you know who is there to pick up the pieces and kick-start the recovery process?

Although this may sound bittersweet to many, it’s our U.S. Government.

As history teaches us, when the United States experienced the Great Depression in the 1930s, it was the U.S. Government that created the first government home loan program called the Federal Housing Administration loan. Its primary purpose was to stimulate the economy by helping people own homes they could afford. During the same era, the government created the Farm Service Agency (FSA) loan program in 1935 to assist farmers to stimulate economic growth.

In 1946, the Farmer’s Home Administration was established, eventually leading to what we know today as the USDA’s Rural Development Loan Program.

As we entered the war era of the 1930s and 1940s, the government created the Veterans Administration (VA) Home Loan Program in 1944 to help our well-deserved servicemen establish credit and enable them to provide homes for their families while they were defending our country.

So why is it important to know this brief history of these home loan programs? As the saying goes, history has a tendency to repeat itself and, if we pay close attention to the past, we can make better decisions today. These home loan programs FHA, VA, and USDA (RD)

also known as government home loans, are still available to the public today to help stimulate the growth of our economy. In times of economic downturn, such as the 2007 Great Recession, these programs help families afford a home, stimulating economic growth.

So how do these programs help our families today get into homes they can afford? The government knows very well that, in an economic downturn, families may not have liquidity or cash, or even a perfect credit background. By offering minimum-to-no down payment programs to citizens who may not have perfect credit, but are still able to afford a housing payment, it allows families to enjoy the pride of homeownership. We may not realize it, but homeowner-ship is one of the primary means of boosting consumer confidence, which leads to economic growth. Here are some of key advantages of these government home loan programs:

• Low or no down payment
• Low interest rates
• Flexible income and credit qualifying.

Due to various restrictions and conditions, it is important to work with someone who specializes in all government home loan programs because they can carefully guide you through the process of selecting a loan program that is suitable for your needs.

Honolulu Homeloans, a leader in government home loans, focuses on the importance of giving back to our local economy by assisting homebuyers with finding the best financing solutions. As part of our community efforts, we offer these government loan programs as well as other loan programs to help families realize the dream of homeownership.

For nearly 30 years, I have specialized in government home loans and, through the many cycles of our housing industry, these programs have been extremely instrumental in successfully pulling our economy through some tough times. If you would like to learn how to take advantage of these government programs, call (808) 681-7500 or visit our website at www.honhl.com to schedule a no-obligation consultation and we will walk you through the process.

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