This is targeting some buyers with the least amount of disposable income and many who are not in the best position financially, with a delicate economy, to take on this responsibility.
Current policies are helping to make buying a home (in certain areas and price ranges) almost too good to pass up. This is a good thing but only when qualified buyers participate. We experienced what happened when housing was "hot", when word spread and greed took over.
We already know that allowing people to purchase a home with very little down is a bad idea. There should be a significant investment that gives buyers a real incentive to stay in their home and honor their contractual commitments regardless of the market or a personal situation.
The number of first-time home buyers will decrease and our market will be left with traditional buyers who are not responding as strongly to the market but tax incentives could help this trend improve.
It is unfair that low-end housing and first-time home buyers have all the existing benefits and sellers in other higher-end markets and buyers making over a certain limit are simply being ignored.
A first-time home buyer buying in the low-end could have the following options: 100 percent financing, low mortgage rates, very low home prices, and now cash to make buying even easier and risks of buying even lower should the buyer decide to just walk away from the property and his/her responsibilities.
Connie De Groot
Comment:
Roberto Magalhaes at 6:01pm June 8
Hi Connie,Aren't there financial qualifiers for the 100% home financing or is the government taking on some of the risk?My general experience, not necessarily in the US, is that 100% financing of capital goods always lends itself to a loss on the lender side since recovery of foreclosed assets is costly.Dank u! Roberto
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