Dear Editor:
"New ideas for Old Town" was a recent News Tribune/Ben Yarnell article. During a City Council work session, many ideas were presented. Most have merit. One I see as grossly problematic, to "expand the city's down payment incentive program ..."
Down payments, for real estate, have historically been at the five percent to 20 percent level. There is a reason for this. The bank wants to ensure that it is lending money to individuals who share a financial stake in the investment. When a buyer invests his or her hardearned money in a down payment, there is incentive to pay back the loan. If the buyer defaults, the investment is lost.
This great nation of ours has recently gone through some financial turmoil. Zero down payment loans were a significant part of the problem. It was too easy to "walk away" from a financial obligation if the going got a little bit rough. We do not need this in the City of Jefferson.
I admonish our City Council members to seriously re-consider this problematic suggestion. Sometimes the best way for governments to help is to get out of the way. We don't need to "rob Peter to pay Paul."
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