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Would you take advantage of a tax-free down payment saving program if it helped you to buy a house?

For example, imagine if the government allowed Americans to contribute a portion of their paycheck each month to a tax-free down payment savings account. They could accumulate those savings as a pre-tax payroll contribution -- much like a 401(k) -- for as long as they like, up to some limit. Perhaps that ceiling could be the 35% of the median home prices in the U.S., which right now would set the cap at around $55,000. Then, once they're ready to make a home purchase, they can tap into that savings, tax-free.

http://www.theatlantic.com/business/archive/2011/03/a-new-plan-for-homeowners-that-protects-taxpayers-too/73255/

 
tasches

Asked by tasches at 5:17 PM on Apr. 1, 2011 in Money & Work

Level 48 (298,202 Credits)
This question is closed.
Answers (9)
  • You would be a fool to NOT take advantage of a program like that. It's next to impossible to buy a home now without at least 5% down and a credit score OVER 740. They also ought to be arresting and prosecuting the lenders who lied to get so many people into homes they couldn't afford to begin with. That was the biggest problem with the mortgage melt down. The millions who defaulted because their lenders lied to get them their loans.
    vbruno

    Answer by vbruno at 5:21 PM on Apr. 1, 2011

  • I know I would! I would LOVE to have something like that!
    lovingmy4babies

    Answer by lovingmy4babies at 5:49 PM on Apr. 1, 2011

  • What an awesome idea!
    rkoloms

    Answer by rkoloms at 5:52 PM on Apr. 1, 2011

  • Sounds like a great idea, but it wouldn't do us a lot of good, we already have our home paid for.
    scout_mom

    Answer by scout_mom at 6:36 PM on Apr. 1, 2011

  • Yes I would!
    Namaste17

    Answer by Namaste17 at 6:38 PM on Apr. 1, 2011

  • Would love being able to get a house I would do it
    Nitestalker

    Answer by Nitestalker at 10:04 PM on Apr. 1, 2011

  • That was the biggest problem with the mortgage melt down. The millions who defaulted because their lenders lied to get them their loans.

    The homeowners also lied and were greedy. When the market collapsed and they couldn't tread water then they started playing the blame game. Lack of personal responsibility is what caused the mess. The banks, people like Barney Frank who blocked fixing Fannie and Freddie before the collapse, and citizens who were greedy.
    Anonymous

    Answer by Anonymous at 2:18 AM on Apr. 2, 2011

  • No, I would not. We were more than able to save more than 20% each and every time we purchased a home. I personally don't believe in relying on the government for much of anything. We paid off our mortgage early and are currently mortgage-free.
    Anonymous

    Answer by Anonymous at 9:32 AM on Apr. 2, 2011

  • I do disagree with the first anon - "The homeowners also lied and were greedy." When I bought my house, I was told by the mortgage broker of a major bank - oh yeah, you can afford twice what you are seeking ... but I knew that was a fallacy. I bought what I knew I could afford if things went south. I still have my house.
    tasches

    Comment by tasches (original poster) at 5:10 PM on Apr. 5, 2011