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Posted on 11/14/2026 12:17:26 PM PST by DFG
Former Biden economic adviser Lael Brainard is proposing a new federal mortgage program that would let qualifying first-time buyers purchase a home with just $1,000 down, financed through higher mortgage insurance fees, Bloomberg reports.
The Kitchen Table Project estimates the proposal could bring 2.2 million additional renter households into the homebuying market.
The proposed Federal Housing Administration program would require "strong underwriting criteria," including a credit score of at least 660 and monthly debt payments below 50% of income.
To cover the cost, the group proposes increasing the FHA's upfront mortgage insurance premium by about 30 basis points, or 0.3 percentage points.
"Not only can it help move 2.2 million renters into homeownership, it can also be done without any cost to the US government," said Brainard, who led the National Economic Council under President Joe Biden.
Down payment assistance typically involves "grants, and grants are a direct cost to the government, and we know that we already have additional fiscal priorities," she said.
"We really looked for proposals that could be done with a minimal amount of taxpayer funding."
The proposal addresses a growing obstacle for would-be homeowners: accumulating enough cash to buy while paying rent.
With mortgage rates above 7% and home prices elevated, a median-income renter household needs 16 years to save for a down payment and closing costs, twice as long as in 2019, according to the Center for Responsible Lending.
(Excerpt) Read more at finance.yahoo.com ...
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Denying a loan to an unqualified POC is “racial profiling.”
Approving a loan to an unqualified POC is “predatory lending.”
See how that works?
Doesn’t anyone remember 2008?
Poorly written article.
Reading it here is what think they want to do
“Changing FHA’s current downpayment requirement from 3.5% to 1%.”
I do this for a living .
Downpayment initially isn’t the limiting factor for first time homebuyers.
And yes, we need more people to be owners versus renters. It makes people become an adult .
That will be a great incentive for the millions of illegals they plan to import.
The Bush Administration spoke of it as a virtue when they tried, and somewhat succeeded in moving the home ownership % up by about 2-2.5 points. Unfortunately, the homeowners they added were on the margins of creditworthiness and job stability and disproportionately failed to maintain homeownership during 2007-2010. That put a mighty dent in the overall economy. Don’t be stupid and try this again. Learn from history.
People of a certain maturity figure out whether to own or rent a home, and they divide themselves accordingly. If you try to force, or unreasonably incentivize, renters into becoming homeowners, they will migrate back to being renters - slowly at first, then all at once in a cataclysmic recession.
Do not do this.
He liked 2008 so much that he’s ready to do it again. Or, he’s figured a way to gain from the bailout he expects from the government.
What could possibly go wrong….oh, we have seen what happens.
We do work for agencies that throw good money after bad—at people who have been shoehorned into homeownership and have no business being homeowners whatsoever. Their priorities are completely out of whack.
Example: One guy who bought a dump of a house for $30K that was bought by a slumlord five years earlier for 5K, already has not paid one penny of taxes since he moved in. Agencies/programs are trying to throw tax payer money at the tremendous amount of deferred maintenance. This guy would have been better off renting. He’s going to lose the house and then the land bank will swoop in and grab it.
A landlord wants more than 1,000 to secure a lease.
I am boldly predicting the next surge of defaults coming in two years.
I buy on every bust. Nice.
Exactly!
The Dhimmicrats are like beached whales. Someone pulls them back to sea to rescue them and they swim right back up on the beach.
That will be a disaster on every level.
Debt ratios of 50% are the reason these people have lousy credit. And the banks and mortgage insurance underwriters (who rarely lise a penny when someone defaults) will be all in for it!
A travesty in the making.
Yeah, another scheme that leaves the taxpayers holding the unpaid bill.
It seems as if we do this every ten or fifteen years.
Newsflash: It never works.
You are looking at it all wrong. That's like saying we need more drivers, so you walk into a kindergarten and hand each of the kids the keys to a car. That doesn't make them mature in itself. And dropping immature people who haven't worked and saved into a house isn't going to make them an adult. It will just give an immature person a house to wreck and neighbors to annoy.
Far better to teach them to be decent workers and to save their pennies and all the other life lessons that go into adulting, and then the homeownership will follow naturally.
A solution would be to require higher down payments at closing but let the borrower pay back all of the high closing fees over time. The lending industry complex would have proper skin in the game. And the government loan agencies would be less at risk.
This and squatters rights and rats will have solved the housing crisis. /s
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