Biden housing plan would give buyers $400 a month for 2 year

[bluemingidiot]

Biden "housing plan would provide a tax credit that would give Americans $400 a month (for two years) to put toward their mortgage when they buy their first home or trade up for a little more space."


Lots of people buy homes. Increased demand causes the price of homes to increase. Increased demand for money to buy a home will likely cause interest rates to increase. After two years some will find they just can't afford the high interest payment and put their home up for sale. Other home buyers stop shopping because of the high interest rate. The increase of homes on the market causes the price of real estate to decrease. People are now underwater with a payment they can't afford and a home not worth what they paid for it.



A recession, which is inevitable, would greatly exacerbate this situation.

[Mr DAVID In Wisconsin]

Most times when the government gets involved with a program, any program it becomes a paperwork nightmare, ridiculously expensive to administer and often has less than desired effects while they tout its huge success and efficiencies. I use to do some contract work on HUD housing, it was twice as expensive, took twice as long and was twice as frustrating as doing the exact same work on non HUD housing.

[countrymom22]

Unfortunately, all people will see is free money and they'll jump on the bandwagon. And in 2 years the tax breaks will end and in 3 years they will be homeless. The government needs to stay out of things!

[Mr DAVID In Wisconsin]

Yes, I think the reality of a $400 jump in house payments after 2 years would create headaches for a number of homebuyers. I remember when rates starting increasing on variable rate mortgages years ago a lot of people weren’t prepared. People are bright and resilient if they want a house they will figure out how to get one tough as it may be. 40 years ago my first and highest ever house note was just over $500. It seemed like a fortune and it was at the time.

[bluemingidiot]

The Downpayment Toward Equity Act differs from the First-Time Homebuyer Tax Credit. The Downpayment Toward Equity Act is a bill that proposes $25,000 cash grants to offset closing costs, taxes, and interest for eligible first-time buyers.

As of May 15, 2024, Congress must still enact the First-Time Homebuyer Act. It’s an active bill with multiple co-sponsors but is not yet scheduled for a vote.

[countrymom22]

I have no words for the stupidity that abounds in Washington.

[bluemingidiot]

They have so much money to give away, you can't expect perfection.

[Mr DAVID In Wisconsin]

Well, when you can borrow money with no requirements or qualifications perfection or even effectiveness is unimportant.