How will SF-DPA act as a stimulus to the housing market?

Hundreds of thousands of otherwise qualified families and individuals are unable to purchase homes because they do not have the required downpayment, whether a consequence of family wealth, divorce, past employment problems, or whatever. As a result of the current economic crisis, they have been joined by hundreds of thousands more, who have seen their retirement accounts and other investments dramatically diminished. The downpayment requirement shuts these otherwise qualified Americans out of homeownership. If they were enabled to purchase homes, there would be a dramatic increase in such purchases. These families and individuals will find it a particularly opportune time to do so, given the fall in housing prices over the last couple of years.

The impact of these people entering the housing market is clear. The huge overhang of unsold houses has devastated the housing market and contributed significantly to the recession. If these potential homeowners were enabled, they would purchase homes and assist in reducing this overhang. There would be a significant boost to getting the country back on its economic feet.

# # #

For additional information, please contact Shelley Mitchell, smitchell@nehemiahcorp.org, 916-231-1999.

# # #