A Presidential Forecast

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Presidential

If you are planning on becoming a homeowner in the next four years, paying close attention to the candidates’ economic plan is crucial–especially their housing plan and finance reform. It can affect the mortgage process for your home loan, the amount of your down payment, your monthly mortgage, and factor into whether you will be able to afford to own your own piece of the land of the free. There are 9 million more renters now than a decade ago, so pay close attention so you don’t get stuck there.  As a voting citizen, you might have already chosen where your vote will be cast or like many undecided voters, you are weighing your options for the candidate that best suits you.

 

Presumptive Democratic Candidate Hillary R. Clinton

Early in her campaign, Hillary Clinton released the $125 billion “Economic Revitalization Initiative.” Her campaign says the initiative is part of Clinton’s “Breaking Every Barrier Agenda,” which includes, among other reforms, plans for providing every child in America a world-class education and adequate housing.  $25 billion of the Economic Initiative will be used for the housing investment program that aims to help more families through sustainable homeownership.

Clinton has also detailed a comprehensive plan to increase investments in the Low Income Housing Tax Credit to garner the production of more affordable rental properties. This aims to protect citizens from skyrocketing rental rates and allow them breathable room to potentially join the homeownership pool.

She has vowed not to make any changes to the current tax rates. She plans to pay for the initiatives by taxing Wall Street, ensuring that the financial institutions that contributed to the recession do their part in bringing back the communities that suffered the most.

Clinton has raised close to $3 million from the real estate industry and it is said she maintains deep connections with the National Association of Realtors’ deep pockets.

She has been praised by Ed Brady, chairman of the National Association of Home Builders, stating, “We applaud Secretary Clinton for recognizing the significant role that housing plays in our local communities and economy and being one of the first presidential candidates to present a housing and community development plan that will help boost homeownership, rental housing and employment opportunities for the American people.”

There are four steps to improve the country’s housing system according to the initiatives plan:

 

  • Help future homeowners save for a down payment by matching $10,000 in savings for “responsible homeowners who earn less than area median income to put towards a down payment on a first home.”
  • Update underwriting tools to reflect today’s dynamic job market and broaden the number of credit-worthy borrowers.
  • Making government agencies that support mortgage lending give a clear understanding of what it takes to get access to qualifying for a mortgage.
  • Counseling programs; helping borrowers become sustainable homeowners by counseling on the significant financial commitment of homeownership.

 

Presumptive Republican Candidate Donald J. Trump

Trump is known as a real estate tycoon so that can only mean great things from him, right? We will have to wait and see, as Trump has not released a Housing Plan as of June 25. Many websites and housing experts have expressed that a Trump presidency would have a negative effect on the housing market because of his unpredictability.

Zillow.com spearheaded a survey with 107 leading economist. Trump scored negatively on the expected impact on home values, Housing Finance Reform, and overall economic outlook.

Roberton Williams, from the Urban-Brookings Tax Policy Center, mentions that Trump’s planned tax cuts could actually drive up interest rates. This could make buying a home more expensive.

However, under his federal tax cuts, you might have more money in your bank account, but fewer tax deductions.