How not to lower home prices
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Further subsidize demand while doing nothing about supply.
Fucking idiot.
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You already can take a low interest loan out against your 401K for a home purchase, and the interest is paid back to you, and it happens before taxes are withdrawn.
Beyond that, there are so many first time howler downpayment assistance options out there, that you would have to have to nothing in the way of a downpayment to have the downpayment be your obstacle.