Downpayment Aid OK'd for Poor Families

AP ^ | 10/1/2003 | JIM ABRAMS

[JohnGalt]

Posted on Wed, Oct. 01, 2003

Downpayment Aid OK'd for Poor Families JIM ABRAMS Associated Press

WASHINGTON - Up to 40,000 low-income families will get financial help in making downpayments on their first homes under legislation passed Wednesday by the House.

The American Dream Downpayment Act, passed by voice vote, is an administration-backed initiative aimed at helping families, particularly in minority communities, who are able to meet monthly mortgage payments but don't have funds for the downpayment and closing costs associated with home loans.

The White House said the legislation would reduce a disparity in homeownership - three-fourths of non-minority Americans own their own homes but less than half of blacks, Hispanics and other minorities are homeowners.

The bill, said Rep. Katherine Harris, R-Fla., the chief sponsor in the House, "empowers tens of thousands of low-income Americans to overcome this striking inequality in our land of opportunity."

Supporters said children of homeowners do better in school and have higher high-school graduation rates than the children of renters, and that this new group of homeowners would boost the U.S. economy.

The program, to be administered by the Home Investment Partnerships Program in the Housing and Urban Development Department, provides $200 million a year over the next two years in grants to state and local governments. Each low-income family would be given an average of $5,000 to be used toward downpayment and closing costs on a first home.

"Normally this bill would be thought of as a liberal bill," said Rep. Maxine Waters, D-Calif. "Democrats have been advocating for a long time for these kinds of expenditures to deal with the housing crisis in America."

The bill must still be considered by the Senate.

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[JohnGalt]

Another $400 million in welfare give aways...how big was that temporary tax rate reduction?

Et tu, Katherine Harris?

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[alisasny]

So basically they are going to give a handout to people who have NO savings and expect that they will be able to keep up with mortgage payments when unforseen expenses come up.

Interesting!

[Pan_Yans Wife]

The new homeowners will pay property taxes, so the politicians like luring them in.

[Phantom Lord]

No downpayment is needed to purchase a home. There is a wide variety of 100%, 103%, and 107% purchase mortgages available. And you don't even have to have good credit to qualify! This is nothing more than welfare.

[conservababeJen]

gimee, gimee, gimee, gimee.........

Ya know... when I bought my first house, I had to SAVE money for a down-payment...Imagine that. Stupid me.

[Beck_isright]

Katherine Harris - Republicrat in action.

[Thinkin' Gal]

The American Dream Downpayment Act

Orwell was an amateur.

[Eagle Eye]

Renters pay property taxes, too. There is no new tax revenue generated with this.

[BlackbirdSST]

Ya know... when I bought my first house, I had to SAVE money for a down-payment...Imagine that. Stupid me.

I had to sell my Harley and still haven't recovered from that 8 years later. Blackbird.

[Phantom Lord]

A rental property owner who owns his own residence generates more tax revenue than does 2 homeowners. The first increase in tax revenue comes from the income tax paid rental income. Many rental property owners also higher maintanence companies for upkeep and lawn service. And when they sell the rental property they pay capital gains taxes where the sale of a primary residence does not as long as they meet some minimal requirements.

[Lijahsbubbe]

Supporters said children of homeowners do better in school and have higher high-school graduation rates than the children of renters

Children of parents who have discipline and are responsible do better in school.

Do they need more people to keep the re-fi bubble going?

[Orangedog]

Why don't they just start dumping money from helicopters and get it over with?! It's bad enough that Washington was handing out more of my tax money in the form of "rebates" to people who don't pay any federal taxes. Now we get to make a downpayment on a house and pay their closing costs! Grrrrrr!

[Lijahsbubbe]

this striking inequality in our land of opportunity

I agree. I demand reparations. We got no assistance on our home.

[Orangedog]

And once again, it's "...for the children."

[shhrubbery!]

Yeah, I heard this on Sean Hannity's radio show yesterday when he had Katharine Harris on as a guest.

Harris positively burbled over her 'first' bill. Sean, to his credit, didn't react too positively when he heard her description of it.

[Eagle Eye]

I'm assuming that these must be owner occupied residences.

So, how do you feel about YOUR tax dollars going to help finance home purchases for people you never met?

[Lijahsbubbe]

Did you know that people on welfare receive rent rebates? (at least in Minn). The taxpayer pays their rent, and the welfare recipient gets the rebate.

[Orangedog]

Is this on top of section 8 rent subsidies? I can only image what will happen when the dollar collapses and takes the entire economy with it.

[JohnGalt]

It's worse than that.

Because the mortgage industry is essentially a government operation, when these people default, and they will, (that is why no one will loan them the money i nthe first place), mortgage holders will absorb the cost.