So according to you all, I should not have been allowed to receive my HUD loan 7 years ago for the house I am still raising my kids in? I don't think that because a person is poor they are necessarily going to default on a loan or
"return to the taxpayers...in the expectation that we will also pick up their monthlypayments." Sometimes good people have bad things happen to them which places them in situations where they could use help. Having a house of one's own where one can put a nail in the wall where one wants or color that wall sky-blue-pink if it is their preference is such a great feeling that it inspires people to do good things with their life in order to keep their homes and a scrap of dignity (and to remember others when their circumstances improve).
That being said, we already have many programs to help with housing, both publically funded through USDA and HUD as well as private organizations such as Habitat for Humanity. I'd be interrested in knowing what legitimate reason the proposers of this legislation had for it. I understand politics and votes were the justification of their excuses.
House Republicans are pushing a new $200 million program to force taxpayers to make housing down payments for 40,000 low-incomehombuyers. What will injecting 200 million Federal dollars in to the low end housing market do? Why of course it will drive up the cost of low priced homes making it more difficult for first time buyers to afford a house payment.
Then if the low-end housing prices go up so will the middle and upper priced homes. What always happens when the Fed starts giving money away to encourage consumer behavior? The price of whatever kind of consumption is being encouraged increases.