Homeownership a Benefit, Not a Burden

By: Felix Torres Colon, Executive Director, NHS of Baltimore

Neighborhood Housing Services of Baltimore is committed to creating and sustaining homeownership opportunities for low-income families. We believe that homeownership makes families and communities stronger.

The current downturn has called the benefits of homeownership into question. Some of these arguments make sense, some don’t and some are made to score political points whether true or not.

This article is a good example:

Shelter, or burden? The Economist April 16,2009

It characterizes subprime mortgages as “…a financial instrument designed to spread home ownership among the poor”. This is absolutely false. These mortgages were designed to maximize profits for the lenders and investors. Most subprime loans were used for refinancing and had nothing to do with homeownership. NHS, along with every major counseling network opposed subprime lending and knew it would not help people become long-term homeowners.

The article labels one of the virtues of homeownership as “…a default mechanism for savings.” It then goes on to denigrate this virtue by offering alternatives that don’t exist or aren’t as attractive. It further goes on to argue that because of predatory and toxic loan products, homeownership is bad for saving. No, bad loan products are bad for savings and wealth accumulation. This is why you should come to NHS!

Finally, the article goes on to mention all the social benefits of homeownership. These are counter balanced by an argument that the author says “…remains controversial”.

Look we agree that homeownership isn’t for everyone and that it is not a guarantee to wealth and prosperity. However when a buyer is educated, makes smart choices, is financed with sustainable products and supported by agencies like the NHS, it is still a good thing for them and the community.