With a full blown mortgage crisis going on, there are many plans out there to save the homes of American’s. This is mine.
The government forms a corporation and this corporation buys the loan of the approved applicant. This loan is, mostly, a very very low interest loan. There are however a few gotchas that come with the program.

The very very low interest portion of the loan is only on the first X amount. This X amount is calculated by taking the person’s income and multiplying it by 3. Anything above that amount comes at a higher interest rate (higher than high rates are today). So say a family making $50,000 a year can have a low interest loan for the first $150,000, anything above that will be at a much higher interest (so the loan has two interest rates). Once they pay off enough to get the principle below $150,000, then the entire loan is at the lower interest rate. It does start to scale down from 3 to less than 3 starting about $150,000 or $250,000 a year on up. I am not even sure people making above $750,000 a year would qualify at all.
The loan is only good for the person’s primary residence. It is not good on any investment property, vacation property or anything like that. As a matter of fact, I may make it so that you can’t own any other properties at all. Further, as you go more and more above the 3x amount, the interest goes up and up for the entire amount above the 3x level. From 3x to 3.5x may be one amount, from 3.51x to 4x or 5x (if 5x would even be allowed, seriously anything above 4x probably would disqualify you) may be another, but all on the amount above 3x, not just from the 3.51x amount on. The idea is to save the home people live in. The higher interest portion of the loan for one punishes the person for buying more home than they could afford, and two pays for the program itself.
The loan, just like a guaranteed student loan, is bankruptcy proof.
The thing that will really make people think twice about applying. The homesteading provision. For every $10,000 of home value, you have to live there a year. Have a $50,000 home, you are stuck there at least 5 years before you can sale the house. Have a $250,000 house, then you are stuck in that house for 25 years… well there is a sliding scale as well…
That sliding scale is put in place to make it more fair since people sometimes need to relocate, and other provisions noted below go off the homestead provision. While 5 years may be a reasonable time for a $50,000 house, requiring a 25 year commitment for a $250,000 house may be a bit much. Locally, $250,000 puts you in a very palatial home, but in other parts of the country you may get something nearly like our house for that $250,000 price. So the scale will probably be based on a combination of income, the housing market for that area and a few other factors.
In lieu of the homesteading provision, if the loan is paid off to the point it would be at the homestead provision point, it would be considered the same.
You may not sublet the property, ever, even after the homestead provision is met. Well, that isn’t entirely true, you can sublet after the loan is paid off in full.
You may not get any other mortgages during the homesteading years unless it is for home improvement, and then only from the same government corporation. That improvement loan will add years to the homesteading clause, and again if it puts the loan above the 3x income amount, the portion above that amount has a higher interest rate. You may after a portion of you homesteading provision has been served, move and rent at a new location, but can’t get a new home at the new location until the homesteading provision has been served.
If after the homestead provision is over and you sell the house for less than what is left. You still owe that amount. As noted before, the loan is bankruptcy proof.
Failure to pay will result in garnishments.