Expanding Homeownership Opportunities for All Americans

Background on Today's Presidential Action

President Bush's initiative to dismantle the barriers to
homeownership includes providing down payment assistance through the
American Dream Downpayment Initiative; increasing the supply of
affordable homes through the Single-Family Affordable Housing Tax
Credit; increasing support for the Self-Help Homeownership
Opportunities Program; and increasing home-buying education and
counseling. In June 2002, President Bush issued America's
Homeownership Challenge to the real estate and mortgage finance
industries to encourage them to join the effort to close the gap that
exists between the homeownership rates of minorities and
non-minorities. The President also announced the goal of increasing
the number of minority homeowners by at least 5.5 million families
before the end of the decade.

• Dismantling the Barriers to Homeownership




• There are 1.53 million new minority homeowners in the U.S. since
  the President's announcement 21 months ago.



• The President's FY 2005 budget provides $2.5 billion over five
  years to enact a single-family housing tax credit to increase the
  supply of affordable single-family homes. The President's budget also
  provides $45 million for housing counseling to support agencies
  counseling families on home-buying -- more than double the amount since
  2001. And President Bush has also requested $200 million for the
  American Dream Downpayment Initiative -- making a difference in the
  lives of low-income homebuyers.



• The President's FY 2005 budget supports rural homeownership
  through the Department of Agriculture with $2.7 billion in home
  loan guarantees for low- to moderate-income rural residents and $1.1
  billion in direct loans for very low to low-income borrowers who are
  unable to secure a mortgage through a conventional lender. These loans
  are expected to provide 42,800 homeownership opportunities to rural
  families across America.



• Through America's Homeownership Challenge, more than 2 dozen companies have made commitments to increase minority homeownership, including pledges to provide more than $1.1 trillion in mortgage purchases for minority homebuyers this decade.



• The Federal Trade Commission and HUD are working together to
  protect homebuyers from predatory lenders.





• Strengthening America's Economy
  

  As 2004 begins, America's economy is strong and getting stronger as a result of the President's pro-growth policies.





• More single-family homes were sold in 2003 than in any other year on record, and the homeownership rate is at a record-high of
  68.6%.



• Housing starts in 2003 were at the highest level in 25 years and
  home sales were the highest ever.



• Mortgage rates remain near historic lows, making home buying
  easier. In the fourth quarter of 2003, the housing affordability
  index, which compares family income against mortgage payments, was at
  the best level since 1973.



• Increased housing prices have added nearly $4 trillion to
  homeowner wealth since 2001.



• Cash-out refinancing added $130 billion to household budgets in
  2003.