San Francisco doubles amount of loans for first-time buyers

Everything is relative, even when it comes to the effectiveness of mortgage assistance programs. Firms that prioritize dispensing loans to potential homeowners will want to know what local regulations are possible influences on their customers and the practices that they need to follow. These may be different from federal standards or even those of neighboring communities.

The San Francisco Gate recently noted that those applicants looking for loans in the city to help with their mortgage down payments can expect to receive as much as $200,000. As the piece's author John Cote notes, this new standard will be seen in effect soon, and though it's actually not that much money compared to housing prices in Northern California, it still represents a kind of increase in opportunity for hopeful residents and new buyers.

The source quoted the city's mayor, Ed Lee, on the hopeful effects of this new adjustment to the previous housing loan limit.

"Our city's middle class is deeply affected by the housing crunch – they make too much to qualify for our traditional affordable housing, but not enough to afford much of the new market-rate construction," he said.

It might be seen as a slightly more liberal approach to financing decisions evident in another recent decision made in San Francisco. The San Francisco Business Journal reports that Wells Fargo, based in that city, is now allowing its employees to engage in peer to peer lending operations.

With successful case management software put into place, your firm can evaluate individual applicants and ensure that borrowers will be able to make timely payments on their loans. Just because government programs are helping prospective buyers get started doesn't mean lenders have any less of a need to manage risk.

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