why doesent the goverment build affordable housing for americans?

Question

you get a loan to buy a house, but the payments jump too high in the future and then you end up haveing to forclose. why is the government alowing this kind of abuse to americans and not responding with building affordable housing?

Answer 1

Because the government is out to screw the american people every chance they get.

Answer 2

The Gov't has loans for those that may not beable to afford high mortgage rates. USDA-RHS. This is the type of mortgage I have on the recommendation of a friend. I am locked in at 6% but if something were to happen to cause our income to become less, disability, my husband getting laid off or God forbid he were to die then my mortgage interest is adjusted to a lower rate making my payments more affordable. Granted I would have to pay back this recapture either if I sold the house or after the loan is paid off which really is not a big deal. So I would say the Gov't is helping and alot of people do not know about USDA-RHS mortgage loans. I do not get any subsidy right now but if something horrible were to happen it is there so that we would not lose our house to foreclosure as a result of not being able to make the full payment. They also have clause where your payments can be held off for 2 years if need be. Of course it is tacked on to the end of the loan..but interest is not charged during this 2 years also. So I guess I could not ask for more from the Gov't.

Answer 3

sadly I agree with the first answer.

It is the downside of US style capitalism that everything is done for the benefit of the upper classes. This applies to housing, medicine and education. People need to start getting a little socialized. Yeah, that's a dirty word these days, but I stick with it.

Pure unfettered capitalism leads to a vertical economy. It isn't good news that houses are selling for a million dollars; it's only good news for the people in that segment of the market, and that's a small segment of the market.

Many many people are being screwed by the general worship of wealth and the inability to recognize sheer profiteering.

I don't recommend communism, but I do suggest that the current system does not work for the majority of Americans, and it's time to start tuning out the apologists for the crappy system and listening to people with alternative ideas.

On a fundamental level, the reason people are fascinated with someone like Paris Hilton, is that we've put the wealthy into a special part of our lives. We are made to worship them, forgive their crimes and let them step all over us, on the theory that if we were wealthy, we'd want the same freedom to be abusive and selfish.

It's a losing philosophy though.

Answer 4

The government is generally not in the housing business. Where local governments have built affordable housing, many of those areas have turned into public housing nightmares and slums, because the residents don't own their residences.
The scenario you set out in your question sounds like adjustable rate mortgage problems. In some cases (not all) part of the fault lies with the borrower who really doesn't have enough income in the first place to qualify for a fixed-rate loan. Again, that's not the job of the government either.

Answer 5

The government is always building affordable housing for Americans. Most apartment complexs are required to have a percent of their apartments available for low-income renters. Subsidized housing is built with low-interest government loans. Habitat for Humanity also builds homes for those who are needy. Many people buy the maximum home they can qualify for, which puts them in a precarious position should their income change, taxes rise or home appreciate. They fail to take into consideration that their taxes and home appreciation will go up. Most people buy a home with the hope that it will appreciate in the event they decide to sell; however, this also means their taxes will rise. It is the discretion of each state, county and town to determine if, or when, and how much your property taxes will rise. One should think about a lot of things before buying a home that might one day be priced out from under their feet...the area one is buying into, the taxes for several years back in the area (have they gone up each year, and how much), cost of insurance, etc. Never get more loan than can be handled. Whatever you qualify for through the lender, go 20% under that to allow for taxes. Always get a set loan rate, nothing that will fluctuate. Adjustable rates are a mistake. Take into consideration that you will be paying for many other things in a house, not just the loan and taxes. Upkeep is costly. It is not the government's responsibility to help pay for a home. People should take out smaller loans and buy smaller homes. In the event a boom in growth hits your area and you are priced out of your home, then it is time for the government to step in and help those in need. One has to remember however that the world isn't shrinking in population, so growth is most likely inevitable.

Answer 6

There are two platforms in this government: liberal and conservative. Liberals tend to fund social programs (such as housing for low income families - see the HUD website (Housing and Urban Development) and conservatives focus on making big business stronger, giving tax breaks to corporations, etc., and figure this will somehow help the little guy get a home loan and keep up with the payments. Uh, which doesn't work.

Answer 7

Because the housing projects usually end up becoming slums.

Answer 8

For Finance and credit solutions I visit this site where you can find all the solutions. http://your-finance.us/index.html?src=5YAojmqfNU741

RE :Why doesent the goverment build affordable housing for americans?
you get a loan to buy a house, but the payments jump too high in the future and then you end up haveing to forclose. why is the government alowing this kind of abuse to americans and not responding with building affordable housing?
Follow 11 answers

Answer 9

Why do people want the government to hold our hand in every walk of life?

We live in a democracy where if you work hard and make the right decisions , you can do just about anything...we shouldn't have to depend on the government for our every whim and desire...

Answer 10

They have tried before. Ever heard of the projects? Yeah, it didn't turn out too well. Also COMMUNISM LOL!