Q: Didn’t the housing crisis prove low-income people can’t be successful homeowners?
By Shelterforce Posted on July 22, 2012
The facts consistently show that with responsible loans, modest-income working families can be perfectly successful at homeownership. In the two programs below, low-income owners had delinquency and foreclosure rates at or below that for higher income homeowners.
What the housing crisis did show is that without the right kind of strong consumer protections and financial regulations, unscrupulous banks and mortgage companies will set borrowers up to fail. If families are given unfair loans with hidden terms that are not affordable unless they refinance out in a few years, and then housing values fall, those borrowers will be in trouble. This is not the same as those borrowers being categorically unable to be homeowners.