Well, it appears that the American House fetish and the lobbying of predatory realtors is getting results, as the House Financial Services Committee has approved the markup of H.R. 6694, which re-institutes the insane downpayment assistance program, in which sellers make a payment to non-profits, plus a “service charge”, and the non profits “gift” this to a potential home buyer, so that they can qualify for a FHA loan.

Typical scenario: a home owner has a buyer who has no downpayment for a $100K house, so the home seller “donates” $6000 to to a “non-profit” group, which takes a $500 fee, and “gifts” the remainder to the home buyer, so the home buyer now buys the house at $106,000, which the FHA recognizes as 5% down, and so qualifies for a loan.

Of course, the buyer has still put no money down, and they owe more on the mortgate, and the statistics show a much higher default rate.

It does not put people in houses. It creates a default/foreclosure timebomb.