Beachfront Property for Millionaires — $500 million
A U.S. Department of Agriculture (USDA) home loan program, created to help people with low and moderate incomes afford a home in “rural areas” has been used by many millionaires in “resort communities” in tropical paradises like Hawaii. According to the report, more than 100 individuals or families received loan guarantees for $500,000 or more from the USDA to purchase a home in Hawaii. And here’s the kicker, “if these new homeowners later cannot afford their new homes it’s no problem, the federal government will protect the banks from losses by repaying 90 percent of the loans,” the report says. Last year, it paid nearly $500 million in lost claims.
