FHCE 3300 Lecture Notes - Lecture 10: Affordable Housing, Down Payment, Federal Housing Administration

• School: University of Georgia
• Department: Financial Planning, Housing and Consumer Economics
• Course: FHCE 3300
• Professor: Kim Skobba

Document Summary

**waiting list for housing vouchers- 10 years in a lot of communities demand far exceeds the supply for rental assistance. Pre-qualifications: how much can i afford: front-end ratio: shows how much of your gross monthly income would go towards morgatge payment, annual salary * . 28 / 12. Down payment: does(cid:374)"t cha(cid:374)ge o(cid:374)ce (cid:373)ortgage is origi(cid:374)ated, banks usually like a large down payment. Market factors affect house price appreciation rates: foreclosure, school zone-rezoning, economy. During the great depression: high unemployment, many homeowners could no longer make payments, more than 1000 mortgages were foreclosed every day. Step 1: home loan bank system: made mortgages less costly, designed to increase construction and employment. Step 2: home owners loan corporation: make monthly payments over several years, provided funds to pay taxes, make home repairs. Intent was to reduce unemployment by stimulating housing construction: reduced interest rates.