Harris Wants to Give $25,000 for Home Down Payment to First Generation Buyers
If Harris gets her way, it’ll be 2008 all over again.
Presumptive Democratic presidential candidate Vice President Kamala Harris will propose giving first-generation homebuyers up to $25,000 for a down payment.
First-generation homebuyers are those whose parents don’t own a home.
First-time homebuyers could get a $10,000 tax credit.
In a preview statement obtained by ABC News, the campaign says, “Many Americans work hard at their jobs, save, and pay their rent on time month after month. But they can’t save enough after paying their rent and other bills to save for a down payment — denying them a shot at owning a home and building wealth. As the Harris-Walz plan starts to expand the supply of entry-level homes, they will, during their first term, provide working families who have paid their rent on time for two years and are buying their first home up to $25,000 in down-payment assistance, with more generous support for first-generation homeowners.”
“The Biden-Harris administration proposed providing $25,000 in downpayment assistance for 400,000 first-generation home buyers — or homebuyers whose parents don’t own a home — and a $10,000 tax credit for first-time home buyers. This plan will significantly simplify and expand the reach of down-payment assistance, allowing over 1 million first time-buyers per year – including first-generation home buyers – to get the funds they need to buy a house when they are ready to buy it,” the campaign said.
campaign official tells me Harris-Walz administration would provide working families who have paid their rent on time for two years and are buying their first home up to $25,000 in down-payment assistance, with more generous support for first-generation homeowners.
— Selina Wang (@selinawangtv) August 15, 2024
Do you know those shows that gift awesome houses to families? Some end up moving out because nothing is free. You still have to pay property taxes, utility bills, and maintenance.
If Harris gets her way, it’ll be 2008 all over again.
This move raises prices and makes them feel they can afford any home.
It leads to risky lending practices.
Risky lending practices caused the subprime mortgage crisis in 2008. This meant companies like Fannie Mae and Freddie Mac, two government-sponsored mortgage lenders, made it easier for people with low credit scores or a high risk of default to get a home loan.
It all started in 1999 by, yes, the government:
Subprime mortgages are mortgages made to borrowers with less-than-perfect credit and less-than-adequate savings. An increase in subprime borrowing began in 1999 as the U.S. government-sponsored mortgage lender Federal National Mortgage Association (widely referred to as Fannie Mae) began a concerted effort to make home loans more accessible to those with lower credit and savings than lenders typically required.
The idea was to help everyone attain the American dream of homeownership. Since these borrowers were considered high risk, their mortgages had unconventional terms that reflected that risk, such as higher interest rates and variable payments. While many saw great prosperity as the subprime market began to explode, others began to see red flags and potential danger for the economy.
Robert R. Prechter Jr., the founder of Elliott Wave International, consistently argued that the out-of-control mortgage market was a threat to the U.S. economy because the whole industry was dependent on ever-increasing property values.
By 2002, Fannie Mae and Freddie Mac “extended more than $3 trillion worth of mortgage credit.”
The lenders would “repurchase mortgages from the lenders who originated them and make money when mortgage notes are paid.”
Guess what happened next? “Thus, ever-increasing mortgage default rates led to a crippling decrease in revenue for these two companies.”
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Comments
No, just know. We don’t need people taking out $100,000 Plus Loans who have no skin in the game as far as a down payment goes. Plus, I don’t want to underwrite a loan paper that I didn’t sign. I’m fine with people buying homes for themselves, that’s the American dream. But you got to work for it
Does anyone else want to ever question weather the vice prostitutes a communist?
No doubt your comment was auto suggested, but nonetheless it’s apropos.
I was about to buy a house, but damned if the price didn’t just jump $25,000.
Buying votes with public money — a tried and true campaign tactic.
As long as Kamala is stealing other people’s policies and looking to buy votes with them, maybe she should just adopt Madonna’s 2016 policy pledge. She could actually make it work.
As President, if g-d forbid she would ever be elected, she has absolutely no power to make this happen. Another false red flag by Trump and his supporters. Please stick to issues of the economy, inflation, the border, China, and national defense. If Trump and his supporters will not do this, then we will lose.
And yet, she is proposing it. She might not have the power to enact it, but a Congress controlled by Democrats could.
None of this comes from Trump
How is this a “false red flag” from Trump, dummy?
This, along with her stab at Nixonian price controls, comes right straight from Harris, you horse’s ass.
You really need to go somewhere else.
Re: no skin in the game
Before the last housing bubble, there were some that would not even pass a landlord’s financial due diligence get hundreds of thousands of dollars to buy their home.
In fact, some of these deadbeats actually walked away from the closing with $$$$$. (The system was actually paying the buyer to buy.)
How many of these deals blew up?
Give people money to buy stuff they can’t afford.
Hold down price increases so companies can’t pass on increase costs.
What can possibly go wrong?
Everything. Just everything.
#TRUMP2024
My parents have passed and by definition do not own anything, much less a home. Do I get anything?
/sarc
Anytime someone says “Should the government…,” the proper response is not just “No” but HELL NO.
Once again most Americans are pushed to the back of the line in favor of buying votes.
And most either don’t know it, or just grumble and do nothing.
Harris wants to give $50,000 to first time home buyers. That’s very generous of her. What? You mean she’s not talking about her own money?
Of course it’s her money. It belongs to the government that prints it, and she’s the queen, right?
This wont appeal to swing state independents. Giving people money contributes to inflation.
If team Trump cannot capitalize on this, shame on them.
They won’t. There will be name-calling and more ranting.
Trump talks about inflation and Harris/ Biden economy non stop
So stop the erroneous, daily, comments
Swing-state independents who understand basic economics. Woops, cut the number by at least 75% right there.
There’s already a program that exists to assist folks of limited means purchase a home…of course you gotta join the military and serve honorably to qualify. Then there’s the State and local programs in some locations that assist teachers and 1st responders afford a home. Adding another alternative devalues the existing programs.
If homes are too expensive then the demand exceeds supply. Remove the burdensome NIMBY regulations that work to limit supply of new homes. More homes means prices will fall. Same with apartment rents, allow folks to build new units and deregulate insane rental rules and more units will be available and that increased supply will reduce rent prices.
Deport foreign nationals. About 25 million of them. Housing will ease.
Deport!
Until then, end ALL freebies for them.
Deport the illegal aliens? Yes absolutely. Let’s also go after their employers while were at it. That’s a critical component for reducing the current illegal alien population and to deter future waves.
‘Hey MR processing plant manager and MR Farmer and MR General Contractor, .we are a joint Taskforce from INS, IRS, SSA and Treasury along with State counterparts. Here is a warrant, we need to see everybody’s ID and the payroll records. Oh, what’s this you don’t have a record for 30% of your employees b/c they are illegals you pay under the table/off the books? Golly gee, we gonna use civil asset forfeiture to seize your business till we get this all sorted out, meanwhile the illegals will be getting interrogated and then deported while you take a ride to jail. Mr IRS guy and Mr Treasury guy gonna see you at the audit they’re opening and the CT dates for the separate tax fraud cases their agencies are bringing. The State Revenue guys gonna have their charges.’
Don’t let the employers slide. When the public begins to refuse to hire cheap illegal alien labor the pressure to ‘self deport’ goes up dramatically. Especially when combined with enforcement of both immigration statutes and very importantly the rules which generally prohibit allowing entry to those likely to be a ‘public charge’. We only want self sufficient immigrants allowed entry based on skill sets we need, individual merit and genuine desire to join and assimilate into our Nation and its culture.
Only quibble I have is the civil asset forfeiture part. No one should be subject to asset forfeiture without due process and conviction.
Maybe that’s just me.
I think he’s applying a goose/gander approach to lawfare.
I understand your concern. Here’s the difference though. We ain’t saying seize someone’s $15K in cash on a traffic stop. These are assets being seized b/c they were used in a crime; immigration violations, tax fraud, unemployment insurance fraud, using illegal labor paid under the table to lower labor costs and unfairly win contract bids…all sorts of actual crimes on the premises. Not made up presumptions from the cops about how ‘only criminals use cash’ or other BS.
Her campaign neglects to mention that she and the Dems are the reason these people can’t afford to save up money for a down payment. Her American Rescue Plan, followed by the ridiculously named Inflation Reduction Act kicked inflation into high gear. Folks are living paycheck to paycheck and have mounting credit card debt. Democrats always think they can fix the problems they created by throwing more money at them.
If the electorate is stupid/gullible enough to elect the wretched Harris-Walz ticket, I wonder how long it will take the U.S. national debt to reach $50 trillion? It’s already at $35 trillion. Annual debt service (interest payments) are very nearly $1 trillion, annually.
My guess is, the national debt will hit $50 trillion three years into a Harris-Walz administration, with all the entitlement giveaways and general profligacy that they have planned.
Well the current pace of deficit spending is $1 Trillion every 100 days. Of course that doesn’t factor the increase in debt service costs as the previously issued low interest debt matures and is reissued at today’s higher interest rates. I believe the last forecast to hit $50 Trillion was just less than a decade but that was based on typical gov’t math projections that X provision would expire, Y increased and Z decreased none of which ever hold true in real world application.
Ten billion just for the 400,000 $25K gifts. To be a Democrat you must believe money grows on trees. Also, when the Democrats get all the illegals to become citizens there will be tens of millions more people for this benefit. (Just ten million @$25K = $250B.)
The vile Dhimmi-crat apparatchiks excel at giving other people’s money away (i.e., obtained from productive taxpayers, many of them conservatives) to their shiftless, entitled and ne’er-do-well voter base.
This is a practiced hustle, using taxpayers’ money to entice certain voter blocs to vote for the Dhimmi-crat ticket. And, the historical record demonstrates that this hustle is quite effective.
It’s really comical, if you think about it.
The vile Dhimmi-crats’ idiotic and destructive policies create and/or exacerbate the very deleterious consequences and conditions which they then cite as alleged justification for yet another round of giveaways, or, a massively profligate new federal entitlement — plus, more federal bureaucrats (or, even an entirely new agency!) to administer the program.
In this manner, the Dhimmi-crats’ policy failures ensure the growth of the federal government and entitlement spending, in perpetuity.
Of course, crone-harlot, Harris, won’t be talking about how the idiotic policies of the “Biden-Harris” Administration, such as their war on/stifling of American fossil fuel production, and, their multi-trillion-dollar spending binges, have been the single largest contributor to Biden-Harrisflation that has driven up the cost of household goods, fuel and groceries, and, driven up rents and home mortgage rates.
Reckless is an understatement. No real comprehension of consequences. Her mom raised her well.
Just finished reading again an interview of David Garrick, Obama’s biographer, by David Samuels at Tablet Magazine. Quite long, but quite worth it.
https://www.tabletmag.com/sections/arts-letters/articles/david-garrow-interview-obama
Some of many things said, here by Samuels, about “public servants”:
“Then again, they’re all like that now. Think of the Clintons. The man from Hope. And Hillary, the great defender of children and the poor. And then its like, “Wait a minute. Did they just amass $3 billion in a private foundation, plus a private fortune of $300 or $400 million within three or four years after leaving the White House?” It’s not just the Obamas. The whole system is sick.”
and
“What do the Obamas and their circle have in common with each other? They are Ivy League people, who ran away from whatever they came from in order to become members of the credentialed elites, whose loyalty is to the system that gives them prestige—or rather, gives prestige to their degrees, of which they are the holders. Once they pair off and reproduce under the seal of Harvard or Yale, they may find it seemly to donate money to an NGO that offers microloans to female entrepreneurs in Pakistan. So why should Obama, the ultimate winner, carry on the charade that he’s part of a community, whatever that means, with these people? He’s happy to go on NPR and talk about meaning or Marilynne Robinson novels or whatever, to make the wine moms identify with him, so he can put one over on them. Just don’t ask him to visit the hospital when you get cancer, because he’ll be hanging out on someone’s yacht, with the other winners.”
Garrow responds, regarding the cancer patient: “But Barack has no interest in any of that. It’s just not there.”
Enter Kamala.
Anyone who can’t figure out that the Dhimmi-crat elites are running a grand old hustle/grift/con, has blinders on and is totally myopic/naive. What these hustlers have in common (besides being Dhimmi-crat hypocrites who covet wealth, while publicly denigrating the idea of accumulating it) is non-existent to scant private sector work or managerial experience, much less any substantive achievements of note. All they they know is a government sinecure.
As your post alludes to, it’s simply not a coincidence that all of the leftist apparatchiks/nomenklatura who perennially vilify corporations, entrepreneurs, the private sector and the amassing of wealth, have secured obscene amounts of filthy lucre for themselves, without creating any great product, idea, or, real economic value.
This is a hustle, pure and simple. And, the obscene, filthy lucre and real estate holdings amassed by narcissist-incompetent-dunce, Obama, the Clintons, Pelosi, the Biden crime family, comrade Sanders, Fauxcahontas, crone-harlot, Harris, and, too many other names to list, here, prove the effectiveness of their hustle.
Many counties have first time home buyer programs that provide a down payment assistance. If the purchaser lives in the home for ten years then the loan is forgiven. It has been very successful as many of the purchasers have seen the value of their homes substantially increase. It has allowed hard working people who did pay their mortgages to financially improve themselves.
These programs are small and the homeowner is closely monitored so defaults are very rare.
To enlarge the program as proposed will be very difficult to monitor and will end up with too many people in mortgage default and ruining their credit rating. What is being proposed is just a campaign promise to disappear into thin air after the election.
you can justify thievery any way you want to
its still another sorryassss lefty agenda that dilutes the real value of the usa
she said something about an executive order to stop
“price gouging”
redistribution of white peoples wealth in
10…9..8
The pre-tax income for leading supermarket companies like Kroger’s and Albertson’s is under 2% of revenue. “Price gouging” my a$$, for that very tough, competitive business. On the other hand, Apple makes 31% of revenue pre-tax.
This is just nationalizing the Evanston, Illinois slave reparations program.
Did you notice the race based kicker? More generous handouts to “first generation buyers.”
“In 2019, Evanston, Illinois, became the first U.S. city to enact a reparations plan for its Black residents. Two years later, the Chicago suburb adopted its first initiative: a housing program offering up to $25,000 to individuals to remedy the harm caused by decades of discriminatory housing practices.
Since then, the city has distributed more than $1 million in home improvement benefits and mortgage assistance and is projected to distribute much more, according to city documents. The program targets Black residents who lived in Evanston between 1919 and 1969 and their direct descendants. The program has a $10 million budget and is funded by the city’s marijuana sales. Last year, Evanston officials voted to expand the program to offer direct cash payments.”
https://prismreports.org/2024/06/10/evanston-illinois-reparations-first-legal-test/#:~:text=In%202019%2C%20Evanston%2C%20Illinois%2C,decades%20of%20discriminatory%20housing%20practices.
If the city had just stopped arresting and jailing the dealers, the city’s marijuana sales would already have funded homes for all of them.
Just received this from a buddy of mine:
“Lady at my former employer, director-level woman said she supports keeping the postal service going even if losing money because those government workers would lose their jobs.
No concept of efficiency or supply and demand – only emotional favorites deserve governmental economic support period.”
These AWFLs will vote for this!
Oh FFS, this would have no impact on underwriting standards. Is it wasting taxpayer resources? That’s a different issue than 2008 all over again. I guess this combat zone disabled vet should just go away because I can’t discern whether your posts are just intended to whip a frenzy or just tragically ignorant of economic issues.
this combat zone disabled vet
Does this provide you economic literacy or moral high ground?
The proposed plan would impact numerous aspects of home buying, including underwriting standards, because the concept of a down-payment lowering your mortgage costs is dependent on you being responsible enough to actually work for and save that money. Meaning giving people their down payments would provide a false context to any formula used for underwriting.
Is that you, Tim?
and this money comes from where?
You
Well, that, and the Treasury printing press.
The Bank?
You could package the mortgages and sell them to investors.
What a novel idea!
There is no pride of ownership if you’re given the money to buy a home. I was in the military in the 70’s. I earned my VA loan. Used my VA loan to buy my first house. It was a 2 BR 1 bath. Not an upscale neighborhood, but nice at the time. My interest rate was 13.25% in 1983. Sold is 7 years later for a small profit because we needed a bigger home. Moral of the story, save your money or sign up for 4 years in the military to get your VA benefits. Or do both. Look at all those monolithic block apartments in Russia. That’s what a 25k gift will buy. Communist housing. FKH
This is all of a piece with the left’s faulty reasoning. The argument is unsound because the premise is false.
Very few people should attend college and only those with relatively robust finances should own homes.
Everyone would be better off this way.
The idea of the American dream was that you could work your way up to those robust finances and so could own a home.
Progressives once again substituting the consequence of a value for the value itself.
“When the people find that they can vote themselves money, that will herald the end of the republic. Sell not liberty to purchase power.”
Ben Franklin, a guy with a brain, unlike the Democrat nominee for President.
Kamala is dumb socialist, who has only worked in government all her career, and doesn’t understand private sector. She believes it is the role of government to give away free money. That will accelerate inflation in the housing market.
The way to make homes more affordable, without triggering inflation, is to increase supply of homes with new construction.
So, I can order home builders to simply build more homes, right?
/Kamala’s one brain cell
You know, if we did get that Constitutional Convention some people have been jonesing for, I’d settle for a single change: removing the “general welfare” clause. It’s way too broad to allow in there any longer. And maybe tighten up what “interstate commerce” means. That would solve SO many problems….
OK, maybe a provision for prison time when voting for a blatantly unconstitutional law or signing an EO outside the scope of the Executive branch. We should at least throw that one in there, too.
It has been urged and echoed, that the power “to lay and collect taxes, duties, imposts, and excises, to pay the debts, and provide for the common defense and general welfare of the United States,” amounts to an unlimited commission to exercise every power which may be alleged to be necessary for the common defense or general welfare. No stronger proof could be given of the distress under which these writers labor for objections, than their stooping to such a misconstruction. Had no other enumeration or definition of the powers of the Congress been found in the Constitution, than the general expressions just cited, the authors of the objection might have had some color for it… But what color can the objection have, when a specification of the objects alluded to by these general terms immediately follows, and is not even separated by a longer pause than a semicolon? … For what purpose could the enumeration of particular powers be inserted, if these and all others were meant to be included in the preceding general power? Nothing is more natural nor common than first to use a general phrase, and then to explain and qualify it by a recital of particulars. …
The objection here is the more extraordinary, as it appears that the language used by the convention is a copy from the articles of Confederation. The objects of the Union among the States, as described in article third, are “their common defense, security of their liberties, and mutual and general welfare. ” The terms of article eighth are still more identical: “All charges of war and all other expenses that shall be incurred for the common defense or general welfare, and allowed by the United States in Congress, shall be defrayed out of a common treasury,” etc. A similar language again occurs in article ninth. Construe either of these articles by the rules which would justify the construction put on the new Constitution, and they vest in the existing Congress a power to legislate in all cases whatsoever.
But what would have been thought of that assembly, if, attaching themselves to these general expressions, and disregarding the specifications which ascertain and limit their import, they had exercised an unlimited power of providing for the common defense and general welfare?
–Federalist No. 41, James Madison
TL;DR: It’s useless to expect any change, “reform,” “improvement,” or “clarification” of a written constitution to solve a problem that at its base is caused by deliberate misinterpretation or outright disregard of the constitution you already have.