I read an article this morning about a new Bill signed into law that would allow Section 8 voucher recipients to utilize this assistance toward mortgage payments instead of rent for the purchase of manufactured housing. (Section 8)
The intent is to provide more low to moderate income families with the opportunity to achieve their dream homeownership; increase a declining homeownership rate in America. That sounds pretty good.
Will it help? Probably some, but not without the risk of pushing families into homes they may not be in a position to maintain. That ain’t so good.
More importantly, does it highlight a weakness that may not be overcome by low rates, low down payment programs, special loan programs or easing of credit standards? Is the real problem that we, as a nation, do not have enough housing for everybody who wants it; especially at the range affordable for those in the low to moderate income category?
I read another article about how expensive it is to build new affordable housing units. (Starter Homes) With yet another addressing a declining home inventory (Inventory). What these seem to indicate is that we may have a housing shortage, especially in affordable housing. Now that’s a problem.
That is something that FHA, VA, FHFA, USDA, Banks, nor Lenders can fix. If the homes are available, and there are qualified buyers to buy them, they can be financed in some way, shape or form, by somebody. The programs, rates, and lenders are all available. But, it doesn’t work without adequate housing.
This takes a growing economy, with good jobs, high employment, decent incomes and growing wages. Hopefully, our elected officials, and those trying to get elected realize that it’s the economy, stupid.