07/29/2026
My 3am thoughts on How to handle the āaffordabilityā in housing crisis for those who want to own vs rent??
Here me out.
The US Government, States, Counties, Townships, Villages all discussing, forming committees, throwing out ideas of how to solve housing costsā¦..with most of the ideas putting the burden on someone else. Have the builders cut their costā¦.let property owners split their small lots in half to create another parcelā¦.start a go fund meā¦..
But what ifā¦ā¦seriously, What IF, the Government decided that for any 1st home buyer ⦠literally 1st home buyerā¦..(currently government programs consider someone who has not owned a home in 3 years is considered a 1st time home buyer)ā¦. But for this scenario, someone who has NEVER owned a homeā¦.( does qualify with employment, credit etc.) and the home will be their Primary residenceā¦..that the Government would subsidize the mortgage rate.
Example: A 30 year, fixed rate mortgageā¦.currently 6.5% - 6.75%.....is Fixed at 4% for the life of the loanā¦.with a Recapture Clause that if the home became non-homestead (meaning no longer the owners primary residence) OR the owner were to sell the home in less than 10 years, the government would collect ārecaptureā all or a portion of the subsidy āsavingsā at the time of closing.
Just to give you an idea of what this might look like?
Using a home price of $400k, (not calculating any down payment or mortgage costs)
6.75% = $2,448.89 per month mortgage ā principal & interest (not including property taxes, insurance etc)
4.0% = $1,666.16 per month mortgage ā principal & interest (not including property taxes, insurance etc)
**dependent on the success, this could be expanded to include offer assistance to other 1st time home buyers as currently defined by HUD (someone who has not owned a home in the prior 3 years)
Why do I care? I was lucky enough to buy my 1st house (a train wreck with no furnace and holes in the wall) when I was 19. Getting my foot in the door was instrumental in being a life long home āownerā. Both of my daughters were able to get their foot in the door (also buying homes most others would do a hard pass) and have been home owners ever since.
I meet a lot of people, all different ages who have Never owned a homeā¦..Want to own their own home⦠but are chasing rising housing costs along with rising mortgage rates that make it nearly impossible even with an increase in their income.