The Obama Administration has pledged to help housing in states that are affected the most by the downturned economy. Which states are going to be affected and what kind of help is around the corner?

President Obama announced February 19th that the government will provide $1.5 billion dollars from the bank bailout monies to help with the housing market in five states. These states have had a 20% drop in housing prices alone.

The Treasury will provide funding to the agencies in California, Nevada, Arizona, Michigan, and Florida. The focus of the assistance is to provide loans that focus on unemployment, loan guarantees, and more. Most of the monies are going to states that need it the most, like Michigan and Nevada. Unemployment is up between 13%-14.6% in some areas of these states and housing has taken a tremendous hit.

Although the pledge is that help is on the way, there hasn’t been a time frame given at this time for monies distributed to agencies. For more information on this government funding contact your lender, or your local government agency such as HUD.