Avoid Predatory Home Loan Lenders
Are you thinking of buying a home? Do you know how to avoid predatory lenders and loan fraud? Every year some homebuyers become victims of predatory lending or loan fraud. Often these are people buying their first home or senior citizens who are deliberately given incorrect information by predatory mortgage brokers, appraisers or lenders. These abusive lending practices can take a number of forms, such as a lender knowingly letting you borrow more money than you can afford to repay, charging fees for services that do not exist or encouraging you to lie about your income to get a home loan. You can learn more about predatory lending practices and how to avoid becoming a victim through resources offered by the U.S. Department of Housing and Urban Development (HUD). HUD is actively involved in fighting predatory lending practices and has tips for homebuyers on how to avoid loan fraud, as well as information that can help you make informed decisions throughout the home buying process. To help you learn more about buying a home, GovBenefits.gov is highlighting some of the benefit programs available to homebuyers.

For more information on predatory lending, including tips on being a smart consumer and other HUD reports on abusive lending practices visit www.hud.gov/buying/localpredlend.cfm.

  • Adjustable Rate Mortgages

  • This program can help individuals buy a single family home in which they intend to live. While HUD does not lend money directly to buyers to purchase a home, FHA-approved lenders make loans through a number of FHA-insurance programs. For more information visit www.govbenefits.gov/goBenefitOverview.do?benefitId=708

  • Fair Housing Initiatives Program (FHIP) Education and Outreach Initiative

  • The purpose of the program is to develop, implement, carry out, or coordinate education and outreach programs designed to inform the public concerning rights and obligations under the Fair Housing Act. For more information visit www.govbenefits.gov/goBenefitOverview.do?benefitId=741

  • Home Mortgage Insurance

  • This program can help individuals buy a single family home. While HUD does not lend money directly to buyers to purchase a home, FHA-approved lenders make loans through a number of FHA-insurance programs. For more information visit www.govbenefits.gov/goBenefitOverview.do?benefitId=504

  • Housing Counseling Assistance Program

  • HUD funds housing counseling agencies throughout the country that can give you advice on buying a home, renting, defaults, foreclosures, credit issues and reverse mortgages. For more information visit www.govbenefits.gov/goBenefitOverview.do?benefitId=841