Home cost

VP Harris has proposed giving $25,000 toward the down payment on a house for first time home buyers. While this can help middle income people, the low income group will not benefit because they cannot qualify for a mortgage. Even a starter home costs more than $200,000 and the down payment required for a FHA loan is 3.5%, assuming a good credit score, and most low income people do not have $7,000 to put down. In the long run this will hurt all low income people because it will just drive up the cost of homes like most government give away programs. Mortgage loan rates have increased from 2% to 7% in the past four years and that has kept middle income groups from buying a home while the increase in home cost have kept low income groups out of the market.