Why is Home Ownership the American Dream?

I have read many opinions over the last few years about how certain people should not be allowed to buy a home.  I often wonder if these people really take a moment to consider what they are saying.  Home ownership has been the subject of multiple studies over the years and specifically shows that it leads to a better community, a stronger community, better families, broader sense of economic responsibility, etc.  Raising children in a home you purchased could be the most important and responsible decision a person will ever make.  So why do some not think this should be an opportunity we make possible for everyone who wants it? 
I think the mortgage crisis helps cause a lot of fear in the industry.   But keep in mind the subprime loans were all in all BAD loans!  They had interest rates that would eventually rise as high as 13%.  Most of these loans had payments that were more than 50% of the borrowers gross monthly income when the max is suppose to be 29%.  Do you know that over 70% of all mortgages still in existance today are in excess of 40% of the borrowers gross income - we are house poor!  I will put this into real numbers for you:
Say your salary is $4,000/mo
Max amount of housing payment should be 29% of this income or $1160/mo
Average Net take home on $4000/mo is 70% or $2800/mo
This would leave $1640/mo for all other expenses including utilities, car payment, food, clothing, etc

During the housing boom mortgage companies were giving loans that started at a lower payment and then adjusted yearly.   So the payment may have started at $1160/mo but then over the next two years could end up at 50% of your gross monthly income.  Let's go back to that scenario:
Salary $4000/mo
50% Housing payment = $2000/mo
Take home = $2800/mo
This leaves a whopping $800/mo for EVERYTHING else!

I can see why these people were forced to walk away from their homes - I would gladly leave that payment behind if it meant I could not eat or provide transportation.  When this became the norm housing prices began to fall and even more people walked away because the house they were trying to salvage was now worth less than the amount owed. 

So let's talk about the loans we provide and encourage.   NONE of the programs we place allow more than 40% housing payment and most do not allow more than 30%.  This is a strong point because it is likely that a person could not find even a comparable rental for less than 30% of their gross income.  Our programs also allow the loan to be modified to the buyer's needs.  For example if the house I want is $140,000 that would equate to a payment of $1150 on a standard 30 year fixed loan in most areas.  But if my gross income is $3000/mo and I only qualify for a $900 payment Section 502 will actually modify my loan to make the payment lower.  They do this by lengthening the term from say 30 years to 33 years.  They also start reducing the rate (always fixed) to sometimes as low as 2%.  This will make that same $140,000 loan have a $900 payment vs a $1150 and I get the home I want and need for the price I can AFFORD. 

All of this of course leads to the benefits of the community as a whole that we spoke of above.  When people are allowed to own their own piece of the community they immediately start becoming more involved, more responsible, and more successful.  This is the core of the American Dream.