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Expanding Homeownership Opportunities for All Americans
Background on Today's Presidential Action
President Bush's initiative to dismantle the barriers to homeownership includes providing down payment assistance through the American Dream Downpayment Initiative; increasing the supply of affordable homes through the Single-Family Affordable Housing Tax Credit; increasing support for the Self-Help Homeownership Opportunities Program; and increasing home-buying education and counseling. In June 2002, President Bush issued America's Homeownership Challenge to the real estate and mortgage finance industries to encourage them to join the effort to close the gap that exists between the homeownership rates of minorities and non-minorities. The President also announced the goal of increasing the number of minority homeowners by at least 5.5 million families before the end of the decade.
- Dismantling the Barriers to Homeownership
- There are 1.53 million new minority homeowners in the U.S. since the President's announcement 21 months ago.
- The President's FY 2005 budget provides $2.5 billion over five years to enact a single-family housing tax credit to increase the supply of affordable single-family homes. The President's budget also provides $45 million for housing counseling to support agencies counseling families on home-buying -- more than double the amount since 2001. And President Bush has also requested $200 million for the American Dream Downpayment Initiative -- making a difference in the lives of low-income homebuyers.
- The President's FY 2005 budget supports rural homeownership through the Department of Agriculture with $2.7 billion in home loan guarantees for low- to moderate-income rural residents and $1.1 billion in direct loans for very low to low-income borrowers who are unable to secure a mortgage through a conventional lender. These loans are expected to provide 42,800 homeownership opportunities to rural families across America.
- Through America's Homeownership Challenge, more than 2 dozen companies have made commitments to increase minority homeownership, including pledges to provide more than $1.1 trillion in mortgage purchases for minority homebuyers this decade.
- The Federal Trade Commission and HUD are working together to protect homebuyers from predatory lenders.
- Strengthening America's Economy
As 2004 begins, America's economy is strong and getting stronger as a result of the President's pro-growth policies.
- More single-family homes were sold in 2003 than in any other year on record, and the homeownership rate is at a record-high of 68.6%.
- Housing starts in 2003 were at the highest level in 25 years and home sales were the highest ever.
- Mortgage rates remain near historic lows, making home buying easier. In the fourth quarter of 2003, the housing affordability index, which compares family income against mortgage payments, was at the best level since 1973.
- Increased housing prices have added nearly $4 trillion to homeowner wealth since 2001.
- Cash-out refinancing added $130 billion to household budgets in 2003.
