Posted on 08/28/2015 11:48:10 AM PDT by Lorianne
In the years since the recession, the dream of a steady paycheck and a home in a nice neighborhood have become more elusive for many working-class Americans. While some may say that the lack of homeownership reflects changing values, owning a home remains an important tool for wealth building for most families. Yet it is particularly unattainable for low-income and minority households. The homeownership rate for households that fall below median income was less than 50 percent in 2014, for those who made above the median it was nearly 80 percent. And the gap in homeownership between whites, and blacks and Hispanics is almost as large.
Now, a new program from Fannie Mae is trying to change that.
This week, the government-sponsored enterprise unveiled plans for a new loan product. HomeReady is specifically targeted toward low-income and minority households, and it allows prospective buyers to pay just a 3 percent down payment up front, provides a homeowner’s education course, and the biggest boon—the program will allow applicants to count income from those who won’t actually be borrowers, toward their gross income. That means in multi-generational households, the contributions of children or grandparents—and for younger borrowers, financial assistance from parents, or aunts and uncles—could be included. For current owners who rent a room or portion of their home for extra income, the money they receive from tenants would count as income if they decide to move.
(Excerpt) Read more at theatlantic.com ...
Sometimes procrastination is good.
If all these extra people aren't on the hook for repaying the loan, what the hell is the point of adding them in the first place?
Just make up people (which will in all likelihood happen) or add people without their knowledge or consent (which will also probably happen). Add Donald Trump's name to your loan application.
This is specifically structured to be the illegal immigrant’s best friend. Living in a single family dwelling that is now home to between two and five families, is the norm.
Property values? They don’t need no stinkin’ property values.
Will you really want to buy your house back after 40 illegals have trashed it while using it as a safe house, as they do in Houston and San Antonio?
that's part of what this about, allowing to add up the income, illegal income, from the 2 dozen illegals crammed into one house.
and that's the other reason for this POS. Many folks, my Wife and I (not white btw) included, managed to turn a nice profit during the loose lending. People got burned but the majority of those that got burned good were the people that could not afford the mortgage, treated their home like an ATM, lack the basic skills in life, like paying a bill on time.
guess who?
You’re probably right, but hopefully 40 illegals can’t afford my place.
Written with the heart of a socialist or, at the least, a do-gooder who chooses to ignore cause and effect.
One of the other "several requirements" is a government mandate that the taxpayers reach in their pockets and help pay for what the record shows will likely be a failure. One wonders if political opposition will step up to this challenge.
Whordiots.
Let’s see now, middle aged white man with a job of over 25 yrs. (Income). Married w/working spouse (Income). Surviving mother-in-law(Income). Own rental property (Income). Have 1 brother and 2 sisters (Income). Nieces & nephews galore (Income). Two friends, both work and one is black (Income). Gimme dat McMansion Dawg ! ! ! !
Snoot ;o)
Deja vu
Haven’t these liberal morons had enough fun ruining the American economy with their homeownership for the poor programs that crashed a few years ago?
Great Utopian ideal but impossible to attain in the real world where folks have to be able to pay the mortgage.
Why are we permitting people known for not being committed to anything, to enter into a long-term commitment?
Worth repeating. Well said.
Universal Homeownership is a great Utopian ideal. But selling homes to folks who don’t always have the income to support a mortgage payment is insane. What happens if the renter moves out or the relative who’s helping with the mortgage payment dies or goes to jail?
It’s bad enough to base lending decisions on marginal income folks, but pooling several marginal incomes together in the hope they will stay together for the 30 year term of the mortgage is totally loony. Isn’t anyone in power smart enough to think this through?
Haven’t we learned that lesson from the last crash or will be liberal ideologues put the country through another financial debacle?
The government’s lack of sanity. You know I get sooo tired of seeing newer cars nicer clothes and better groceries every where except in my possession but I guess I just don’t get it ... Get it. Oh annd shiny wheels boats trucks motorcycles and places to stay at too... what’s not to like ¿
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