A major problem in USA, an exceptionally wealthy and global super-power is that, historically, 35% of the population cannot qualify to obtain a home mortgage loan under the current regulations, institutional and qualification constraints. This, many economists argue, lead to an unequal wealth distribution as homes are the major source of enhancing wealth; Also, these households cannot take advantage of home mortgage-interest tax deduction, which is the number one tax deduction. Many global public policies and actions are focused on improving the wealth of the poorer segment of the population and financial inclusion, to enhance home affordability; and participate in the American Dream and Wealth. One approach that was tried and failed was the relaxation of underwriting standards in 2000‘s, and Securitization of these loans which lead to Subprime securitization and the great recession of 2008 and near economic collapse of global economy. Various other approaches have been proposed such as:

 A. Provide substantial cash assistance (of $25, 000) to individuals whose annual income is less than $100,000 to use as a down payment to help to buy a home; Or 

B. Give away free land to build a house for the poor population; Or 

C. Build subsidized housing at government expense, and over a period transfer the house to individuals.

Question:

If you do not support any of the three approaches, what steps would you recommend that would lead to higher participation of home ownership, and minimize wealth inequality in the USA in the forthcoming years? What are the potential challenges of your approach for financial institutions and mortgage markets?