Quote:
Originally Posted by ASAP
it's honestly a fail all around...
the government put more fuel on the fire instead of-
1) limiting LLC and Corp purchases on housing
2) loosening zoning
3) incentivizing tax credits or some sort of subsidy for home builders to build more supply (i don't know anyone that wouldn't support that)
4) oh and here is a crazy idea... instead of giving everyone a 2% rate... why not discount the rate 3% points for 1st time home buyers to help affordability
5) 5% downpayment on homes? Why LOL? this should ABSOLUTELY not be allowed... other countries around the world would scoff even remotely at the idea
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Agree with points 1, 2, and 3.
There were first time homebuyer/where you buy programs. Not sure if some of those exist now. I was the beneficiary of one such program when I bought my first home back in 1999. The program I got into was part of the Community Reinvestment Act. The home I purchased qualified for the program. I don't remember if this was also only for first time homebuyers. What this program did was lower the down payment requirement to a minimum of 3%. I put down 5%. I was not required to pay PMI. And the rate I got was very reasonable at the time. I think I got a rate of 6.375. I did have to meet income and credit score requirements. I have to say this was the springboard I needed to get into real estate and contributed to where I am now with my two properties.
To me, the big challenge for first time homebuyers these days is to get that first home. But this is something to think about which many are not bring up. Not everyone should be homeowners. For many, renting makes more sense for them. It's this whole propaganda that everyone has to be homeowners. I would say no. Same thing with getting a college degree. Not everyone should be getting a college degree.