Currently the only options available for middle class families with limited incomes are the FHA program requiring a minimum 3.5% down payment or the USDA Rural Develop Loan. While the USDA program is a 0% down loan, it is not available in all areas and has an income cap of 115% of the mean income of the county of residence
I propose that the FHA and USDA programs be modified so that families making less than $100,000 per year have an option of 0% down.
The benefit of extending this to FHA would allow more Americans to purchase homes in metropolitan areas and keep middle class earnings in these communities. This would allow middle class earnings to return to the hardest hit metropolitan areas while allowing more families to own their own homes.