I believe there is one good way to help this countries citizens, as well as people all over the world, buy homes and keep them. The best system to buy a home is to have a fund of capital, of pure cash, that potential home buyers could tap into. Because home sellers often settle for lower terms if the buyer provides up front cash, home buyers could take a discount on their purchase.
Once the home is purchased, the borrowers of course would be indebted to repay their loan in monthly installments. I admit this is much like a loan, but the key difference is that people would not have to pay interest on this loan. Because of the charity involved in this fund, one would hope that others would pay back this loan as quickly as they can. The Housing Fund would act more like a charity than like a bank. Its purpose: to provide the people of America with the ability to find a home they need, without paying ridiculous amounts that cripple them.
It is in the best interests of the government of this country to do all they can to support the home buyers of America. These people represent fledgling or expanding families mainly.
Admittedly, there may be some who would try to abuse this system. However, people would have to show a justified need to use this fund--that is, to buy one house they live in.
We have seen that the government has agreed to pay billions of dollars in the fall of 2008 to save the housing market, and the corporate banks that were much hurt by the sub-prime loans in the housing industry. How much more useful would that money be to make a housing fund that helped people buy homes for 90% of their market value in cash, and then pay back that loan without interest. With enough people paying off their loans, the fund would remain at a relatively level sum. Additionally, it is hoped that kind and charitable people of all sorts, including those who benefit directly from the fund, would contribute more than their required payments in the years once they have payed off their loan.
Simply put, we need a way to help the struggling people of America to buy their home. Imagine the relief that will ensue when thousands of Americans have paid off their mortgages in 5 years instead of 30. This will free up consumer spending in other areas, and it will allow many Americans to see the benefit of such a system. The bottom line is this: it is not simply a good thing for America to subsidize the housing market through a national charity, it is essential.
In order to offset the cost of inflation, and keep the fund at a level that will provide continual benefit to the home buyers of this country, The Housing Fund will need yearly donations from the US government, and other wise individuals (who see the mutual benefits such a system provides to all of us). America needs home owners, families in modestly sized homes that meet their needs, and citizens free from gargantuan burdens. America needs a way to support those who truly need a home here.
Because the people must pay off their loans, even without interest, it will still encourage them to buy a home they can afford and not abuse the system. They are encouraged, and watched, so that they buy a home within their means. This will do more to help America than social security for the families in those homes. Imagine thousands without housing payments to make, but at the same level of income! Imagine parents free from mortgages when their kids are still young! Many will undoubtedly give back to this Fund out of gratitude, and those that don't will wish they had!
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