What will a Republican in the White House, especially a real estate mogul, mean for the housing industry? Many Trump supporters say they have not been able to achieve financial stability in the current economy, and hope Trump can change things. The Republicans released their Republican Platform 2016 this week at the convention, which has some details about how the party hopes to change the federal government's role in the real estate market.
Realtor.com's Clare Trapasso explains:
“Homeownership expands personal liberty, builds communities, and helps Americans create wealth,” reads the platform. It later goes on, “We must scale back the federal role in the housing market, promote responsibility on the part of borrowers and lenders, and avoid future taxpayer bailouts.”
But real estate analysts were quick to point out that these reforms could, in some instances, potentially force buyers to plunk down larger down payments or pay higher interest rates. “It may be harder to get mortgages, and those that will be available will be less advantageous,” says Bob Edelstein, co-chair of the Fisher Center for Real Estate and Urban Economics at the University of California, Berkeley.
The Republicans would also stop the FHA from providing taxpayer-guaranteed mortgages to wealthy home buyers. The FHA typically insures loans for low-income, first-time, and other buyers who don’t have enough for a 20% down payment. The GOP platform also calls for an end to the government-mandated number of loans that Fannie, Freddie, and federally insured banks are encouraged, if not required, to set aside for “specific groups.”