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FHA has always been seen as a vehicle to provide needed home financing for low-to-moderate income homebuyers. Since their inception many years ago, they have served these needs quite well.
It appears they now may be challenged by the new administration’s budget proposals which cut funding for some FHA programs.
Dr. Ben Carson, the new Secretary of HUD, sees things a little differently. He believes that FHA programs are intended to assist those who need some help. But, they are not intended to sustain some borrowers in a cycle that results in a permanent position of poverty.
It all depends on the consumer’s state of mind, their willingness to succeed, and their having the opportunities to do so. A pretty tall order!
Dr. Carson believes that given the right mindset, a little boost from FHA, and the opportunity, most consumers can realize their dreams of homeownership without major help and costly FHA housing programs.
Maybe, but where do these opportunities come from? We need a growing economy, with job and wage growth to fulfill these needs. Will we get it from the proposed budget now introduced by the new Trump Administration?
Where do you stand?
- Is FHA here to lend a helping hand, or to carry the load for those who can’t, or won’t?
- Do FHA programs make it too easy for some to get financing, and subsequently default when times get a little tough?
- Does FHA help homeowner growth and understanding or hinder their progress toward self-sustainability?
As usual, the truth probably lies somewhere in between. We need programs to help deserving people have the path to homeownership, with the ability to sustain it.
In doing so, we need to very careful not to make things so easy to get home financing that the consumer does not feel fully vested in the process. If it’s too easy, it doesn’t mean much to fail. It’s a thin line and one that we all need to walk very carefully.
All our futures may depend on it.
I guess FHA’s new mantra should be “FHA helps those who help themselves”.
What do you think?
