Could the Biden Administration’s plans help you buy a home?
Becoming a homeowner has advantages and disadvantages, but one thing is clear: homeowners tend to have higher net worth than tenants. For many people, own a house is also a lifelong dream because they feel that it will help them establish a sense of permanence and put down roots.
President Joe Biden recognizes the importance of home ownership to people across the country. In fact, on June 1, he gave a Proclamation on the National Month of Home OwnershipIt reads: “For millions of Americans, home is the cornerstone of a life of security, dignity, and hope.”
Biden also recognizes the challenges far too many Americans face when buying a home, noting that “the dream of owning a home is becoming increasingly difficult to make and maintain”.
In order to make the dream of owning a home for more people a reality, the Biden government has come up with a number of proposals. These could make a real difference in overcoming barriers to owning real estate. Here are three of the suggestions.
1. Develop affordable housing
Biden has suggested several initiatives aimed at encouraging the building of reasonable-priced homes that ordinary Americans can afford. Some of these initiatives include:
- A neighborhood home tax credit designed to encourage investment in the construction or renovation of affordable homes.
- An opportunity development program that provides financial incentives to encourage communities to remove barriers to building real estate for low-income Americans. These obstacles include building code laws that, for example, require minimum plot sizes, which tend to make the construction of affordable housing more difficult.
The American Jobs Plan also allocates $ 35 billion to the HOME Investment Partnership Program, which provides state and local funding to help build or renovate low-cost homes for sale or rent.
In many parts of the country, a glowing housing market has resulted in a shortage of apartments for sale and soared in prices. Biden’s initiatives to encourage the construction or renovation of low-cost real estate could have a major impact on helping more people buy their own property.
2. Temporary expansion of the Good Neighbor Next Door program
In his fiscal 2022 budget, Biden also proposed $ 30 million to temporarily expand a government initiative called the Good Neighbor Next Door program.
This program covers 50% of the cost of a home in a revitalization area for eligible buyers who undertake to use the property as their primary residence for at least 36 months. This program is open to:
- Law enforcement agencies
By subsidizing the cost of owning a home, the program makes it easier for eligible individuals to purchase real estate because they do not need as much home ownership mortgage or deposit.
3. Combating racial differences in the housing market
The Biden administration announced on June 1 that it was launching a new “inter-agency initiative” aimed at reducing racial discrimination in the housing market.
In particular, the initiative will focus on the inequalities that exist during the home appraisal process, as well as other new rules to reduce discriminatory behavior. Low estimates can make it difficult for people to get mortgages for home purchases and refinance homes when interest rates go down.
Biden has also allocated billions to equity housing programs as well as affordable housing programs in its proposed 2022 fiscal year budget.
These are just a few of the many initiatives the Biden Administration has proposed to make it easier for people to buy homes. The president has also urged Congress to spend billions creating new programs to make affordable rental housing available.
It remains to be seen, of course, whether any of these plans will work out. But whether or not Congress takes up his suggestions, during National Homeownership Month the president has definitely shown his commitment to helping more people realize their dream of owning a home.
A historic opportunity to potentially save thousands on your mortgage
The chances are good that interest rates will not remain at a low of several decades for much longer. This is why it is critical to act today, whether you want to refinance and cut your mortgage or are ready to pull the trigger to buy a new home.
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