President Donald Trump: I have an idea to help first-time homebuyers

"Housing affordability has become one of the biggest economic challenges facing Americans. Mortgage rates remain far higher than they were just a few years ago, and the cost of housing has continued to rise across most of the country. However, extending mortgages to 50 years or simply stretching loan terms may not truly solve the problem."

"If a buyer qualifies as a first-time homeowner and is purchasing a property using a federal loan program such as an FHA or VA mortgage, the federal government could contribute up to 6 percent of the purchase price toward the buyer's closing costs or interest rate buydown. In other words, the assistance would move from one federal program to another."

"According to the National Association of Realtors, the median price of an existing home in the United States has recently hovered around $390,000. A 6 percent contribution on a home at that price would equal approximately $23,400. That amount could make a dramatic difference."

Housing affordability remains a critical challenge for Americans facing elevated mortgage rates and rising home prices. While proposals like 50-year mortgages aim to lower monthly payments, they merely extend costs rather than reduce overall burden. An alternative approach involves redirecting federal revenue from tariffs to support first-time homebuyers and veterans using federally backed loans such as FHA or VA mortgages. The proposal suggests the federal government contribute up to 6% of the purchase price toward closing costs or interest rate buydowns. On a median home price of $390,000, this would provide approximately $23,400 in assistance, significantly impacting affordability without extending loan terms.

Read at www.housingwire.com