Pretty much everyone posting so far thinks this is a stupid idea, however if a person can handle the cost of a mortgage and the downpayment loan repayment, why not?  A modest home of $150,000 requiring a 10 percent downpayment means someone has to save a minimum of $15,000 plus all the associated costs, while paying rent.  If you could instead put someone with sufficient income and demonstrated durability of employment into a home, isn't that better for everyone?  As long as you properly qualify people, you may have some defaults but shouldn't be any more than people who are properly qualified for mortgages with downpayments as well.  Where's the downside?