LAS VEGAS -- Federal guidelines were released Thursday to help promote responsible lending and prevent a repeat of the housing crisis that hit especially hard in the Las Vegas valley.
New mother Carrie Gorgonio has been saving up for a home, but it hasn't always been easy for her and her boyfriend.
"We haven't gone out in a long time," Gorgonio said. "A bunch of friends are getting mad at us for not seeing them, but it's sacrifices for the long term."
Those sacrifices could pay off big by the guidelines that are meant to reduce risky lending.
Starting Jan. 21, low-price and low-interest loans will only be available to those in good financial standing. A borrowers debt can not amount to more than 43 percent of their gross income.
The guidelines might also help mortgage lenders, such as Richard Rodarte.
"I think in the long run it will help the market," he said.
By helping his clients obtain the so-called qualified loans, he will be protected from lawsuits if borrowers end up defaulting on their mortgage.
"It doesn't do our industry any good if we are writing loans that can't be repaid," Rodarte said.
Despite the guidelines, lenders said potential homebuyers should not shy away from trying to buy their dream home, but also keep in mind that financial responsibility is key.
The first step is to reduce debt by paying off everything from cars to credit cards.
Also income should be maintained to ensure the mortgage remains affordable.
Gorgonio said she is living below her means to find a house in her budget and hopes that day will come soon.
Lenders have a year to fully implement the guidelines.
