June 17 , 2005

Celebrating June as Homeownership Month: Making the Dream Possible for More Americans

COLUMBUS – Congresswoman Deborah Pryce (R-Upper Arlington) today released the following op-ed:

“Do you remember the time you turned the key to open the door of your very first home? It came after that new job, your marriage, or the news that a baby was on the way. There was a feeling of accomplishment that you were taking a new step forward in responsibility. Buying that home signaled that you were at a stage in life where you felt the need to set some roots and make an investment in your community. It has been a milestone event in the lives of millions of Americans over the years and a big part of living the American Dream.

There are many benefits of homeownership. It creates a level of stability in a person’s life and provides a safe environment for children to grow and learn. A home can also have several financial benefits, creating borrowing power for the homeowner and the opportunity to build wealth that can be passed on to children and grandchildren.

Today, more Americans have achieved the dream of homeownership than at any time in our nation’s history. Nearly 70 percent of households own their homes. And for the first time ever, in 2004, a majority of minority households owned their own homes.  Again this year, word from the housing market is good. Low mortgage rates, combined with more jobs, increased personal income and consumer confidence, have created a favorable environment for home buyers. The National Association of Realtors says home sales nationwide will set another record in 2005.

Still, there are many Americans who don’t have a home of their own. They may not have enough extra money to save for a down payment or have other financial difficulties, such as poor credit scores that make it difficult for them to get approved for a mortgage. Congress is working to find ways to help people in these situations achieve the goal of owning their own home.

In 2003, President Bush signed into law a new program called the American Dream Downpayment Initiative. It helps needy families overcome the obstacle of saving enough cash for down payments and closing costs by providing down-payment assistance.  Other new proposals to improve homeownership are being considered as well.  Congressman Pat Tiberi (R-Columbus) is championing the effort to pass the Zero Down Payment Act, which would allow first-time buyers who have good credit history to finance 100 percent of their home purchase price and closing costs.  President Bush has also proposed a Payment Incentives program, which would offer those who have weak credit histories the opportunity to reduce their mortgage-insurance premiums after a period of on-time payments. 

Removal of credit barriers and wealth limitations could have a major impact on minority homeownership and help reach the President’s goal of increasing the number of minority homeowners by 5.5 million families by the end of the decade.  The President has issued a challenge to the private sector to join in this effort and has secured pledges to provide more than $1.1 trillion in mortgage purchases for minority homebuyers this decade.

Other initiatives to assist potential homebuyers offer housing counseling to help families understand the responsibilities of homeownership, identify how to obtain a loan and learn fiscal responsibility so they can avoid default. The president has also proposed tax credits for home builders who construct homes in lower income areas and homeownership vouchers for low-income families who are currently renting through the Section 8 program.

Unfortunately, even these programs won’t be able to help every individual. There are some who have fallen on such hard times that they can’t even afford a place to rent. But that doesn’t mean they shouldn’t have the opportunity to take part in the American Dream. They just need more of a helping hand. Earlier this year I introduced the Services for Ending Long-Term Homelessness Act. This legislation would authorize funding for services designed to keep chronically homeless individuals and families off the street and help them get into permanent, supportive housing. The long-term goal is to give people a stable environment from which they can learn new skills, get a good job, and gain some independence so they too can experience the joy of homeownership.

By continuing to promote initiatives such as financial literacy, tax incentives for building affordable homes, voucher programs, and down-payment assistance, we are strengthening our communities and improving citizens' lives.”