The Bush Administration is proposing several initiates to increase housing opportunities for all Americans, particularly minority families and hose with special needs. For example, the President is proposing a $200 million American Dream Downpayment Fund and is expanding the Section 8 Homeownership Program to help low-income families overcome the initial costs of buying a home.
The American Dream Downpayment Fund will help low-income people with their down payment on a home of their own. By putting $1 billion into the American Dream Fund over the next five years, HUD’s goal is to bring homeownership to 650,000 low-income families.
The President’s budget also includes a Renewing the dream tax credit to encourage investors to develop housing for low-income families. This tax credit will help build 100,000 new homes in low-income areas over the next five years.
HUD is also seeking authority to allow FHA to offer low-income families a hybrid adjustable-rate mortgage, reducing families’ initial homeownership costs by combining a low fixed rate in the early years with a rate that later adjusts with the market.
