If you are considering buying a home, you should plan about 35% of your pretax income for total housing cost: mortgage, insurance and taxes.
That is the model that most lenders use. So the proposal by HUD Sec. Ben Carson to raise the minimum payment for subsidized housing from 30% to 35% of adjusted income seems in line with accepted norms. He also proposes raising the minimum rent, that charged to the poorest families, from $50 to $150. That also doesn't seem unreasonable. These changes follow the Trump plan of lifting people from welfare to work.
He is also looking to simplify the burden on housing authorities for outdated calculation methods and onerous regulations. Dr. Carson said, "Today we begin the necessary conversation about how we can provide meaningful, dignified assistance to those we serve without hurting them at the same time."
This should be a concept that people on both sides of the aisle can embrace. For far too long, we have held down our poorest citizens and in doing so, did great damage to the black community.
