Gov. Pat Quinn, in a campaign to make home ownership more accessible, is touting the new "Welcome Home Illinois" loan program for first-time home buyers.
"Don't let concerns about a down payment keep you from buying your first home," the website proclaims. It offers $7,500 in down payment assistance and below-market interest rates.
Participants have to put up just 1 percent of the purchase price or $1,000, whichever is greater. The maximum house cost in the metro-east can be $259,615.
What a deal, right? No sense messing around with a starter home; get the dream home immediately. But can the buyer make the monthly payments?
Didn't we learn anything from the housing market crash a few years ago? Setting the bar so low for buying a home is a recipe for disaster.
Lenders once required 20 percent down to buy a home. They understood that when people have too little skin in the game, there is a much higher chance they will default on their loan.
Liberals love the idea of home ownership for everyone, but the truth is not everyone has the financial means to be a home owner. A mortgage is a huge commitment and the state is making a mistake by making it so easy to obtain.