The Emergency Homeowner Loan Program, or EHLP, aka Government Big Daddy Bailout Fund will provide zero-interest loans of up to $50,000 to pay your mortgage, property tax and insurance bills for up to two years. That is pretty damn good, considering those who need such help probably make under $100,000 a year and have homes valued right around the median price of $170,000-$200,000.
Supposedly, the program allows you to limit your mortgage payment as a percentage of your income to 31% or $150, whichever is greater. The EHLP will pay the balance. Homeowners can receive this help for up to 24 months, or until they run through the maximum EHLP loan amount of $50,000.
If you keep up with your payments over a five year term, each year that passes, you don’t have to pay back 20% of the loan! That’s a free $10,000 a month you get to keep a month up to a total of $50,000! Let’s say my house is worth $2 million bucks, which is not unreasonable for a 2,800 square foot house in a good area of San Francisco. Given the loan is probably around 25-30% of the total value of the typical homeowner’s house, that’s like a San Franciscan homeowner getting a nice $500,000-$600,000 loan for free baby!
I would borrow that $500,000-$600,000 in a zippy by declaring hardship, pay off the loan amount regularly for 5 years and jump up and down singing “I love you Obama!” Given only $1 billion is available to ALL of America, which is seriously a drop in the bucket, I would probably be tempted to share some of the $500,000-$600,000 free money from the government, with the application officer. You know, buy them a Mercedes Benz, send their family on an all expenses paid two-week trip to Disney World or Hawaii or something. It’s all about sharing the wealth as the government continues to redistribute!
We’ve only got until July 22, 2011 until this stupid program is over. When it is, don’t worry, I’m sure there will be some other discriminatory program the government will come up with that will only help a tiny minority. But hey, at least our government is trying. Be one of the first 30,000 applicants and win by applying here! But one thing before you waste your time applying for the lottery, if your income is over $75,000 you are shit out of luck! Remember, our government is all about wealth transfer. There’s no way someone making $85,000 a year could need help too. Nope! Only $74,999 and below.
It just goes to show you that one should always buy a home when your finances are in order. The government highly favors the owner class over the rental class. They allow for mortgage interest deduction as well as fantastic free money subsidies if you bite off more than you can swallow. Don’t fight the government. It’s like Peewee Herman trying to fight Godzilla! We’re all struggling in some way. We might as well go with the flow and take advantage of the government while we’re at it.
Happy 4th! Don’t forget the government loves you, and this program proves it!
Renters, how do you feel about homeowners getting a free $50,000 from the government? Homeowners, how do you feel? If you know the government is there to bail you out and provide free money for your entire home ownership experience, why would you rent if you have the money?