News and culture through the lens of Southern California.
Hosted by A Martínez
Airs Weekdays 2 to 3 p.m.

New fed rules make mortgages easier for first-time buyers




MORENO VALLEY, CA - AUGUST 25:  Two vacant homes are for sale on August 25, 2008 in Moreno Valley, California. Sales of existing homes rose 3.1 percent in July as buyers rush to take advantage of plummeting property prices in regions hit hardest by the housing crises. Despite rising sales, the number of unsold properties hit an all-time high in hard-hit places like Moreno Valley in a market slump that could take decades to recover. Nearly 2.8 million U.S. households are expected to face foreclosure, give up their home to their lender, or sell their properties for less than their mortgage value by the end of next year.  (Photo by David McNew/Getty Images)
MORENO VALLEY, CA - AUGUST 25: Two vacant homes are for sale on August 25, 2008 in Moreno Valley, California. Sales of existing homes rose 3.1 percent in July as buyers rush to take advantage of plummeting property prices in regions hit hardest by the housing crises. Despite rising sales, the number of unsold properties hit an all-time high in hard-hit places like Moreno Valley in a market slump that could take decades to recover. Nearly 2.8 million U.S. households are expected to face foreclosure, give up their home to their lender, or sell their properties for less than their mortgage value by the end of next year. (Photo by David McNew/Getty Images)
David McNew/Getty Images

This week the government released new plans to make buying a home easier.

Now, under the proposal, first-time buyers could get a mortgage plan with as little as three percent down. That could increase home ownership. At least that's what the government is hoping.

But some worry that it could also increase the chances of defaults if the market takes a downturn.

Here to help us break it all down is Chris Thornberg, principal at Beacon Economics.