Torrance, CA – Community activist and congressional candidate Omar Navarro is proposing a bold piece of legislation that aims to restore abandoned and neglected neighborhoods across America, including California’s 43rd district.
The AMERICAN DREAM HOME OWNERSHIP ACT would forgive student debt of residents aged 45 and under, allowing them to turn their debt into cash if they promise to purchase a home in troubled or neglected areas. For those without student debt, the minimum credit score requirement for the FHA loan of 580 with 3.5% down would be reduced to a credit score minimum of 500 with 3.0% down.
Navarro has seen what years of neglect and poor leadership from Maxine Waters has done to community safety and interest in home ownership in towns like Los Angeles, Torrance, Lomita and Inglewood.
“Americans aged 45 and under are weighed down by out-of-control student debt or poor decisions they made early on in life. As a result, we have entire communities turning to dust because people cannot qualify for loan programs and reinvest in their communities. They have been robbed of the opportunity to achieve the American dream of raising a family in a safe neighborhood behind that white-picket fence. I believe that if we forgive student debt and lower the requirements for everyone else with proper protections, we can encourage people to come home and reinvigorate abandoned communities that have fallen to crime and a scarcity in homeowners that actually live amongst their neighbors.”
- Forgive student loan debt for at-risk areas throughout the United States as long as the debtor uses the money to purchase a home and lives on site for a minimum of three years.
- Lower federal requirements for the FHA loan for all other applicants to 500 with a down payment of 3.0%.
- No tax return requirements.
- Allow up to 100% financing.
- Lower debt-to-income ratio to <38%.