Trade in that old clunker for a conservative and get a $5,000 tax rebate!

Nobody mentions that the Federal Department of Agriculture ALSO has home loans available for rural America (or towns under 25,000 in population) at 5 1/2% interest, which cost purchasers about $1,000 to move in.

bradley11 on October 9, 2009 at 10:58 AM

Excellent point. My exurban neighborhood is in the jurisdiction for these loans whose “advantages” are:

No Down payment is required, Flexible credit score guidelines, No maximum purchase price limit, Closing costs can come from any source including gifts, Repairs and improvements can be included in the loan.

And that will soon be expanded. But it was totally innocent in the financial mess. Totally innocent.

Social Security running out of money? You lie!
Fannie Mae/Freddie mortgage crisis? You lie!

Crisis? What crisis?

FHA loans are especially vulnerable because they require only a 3.5 percent down payment — well below the 10 to 20 percent private lenders demand.

And because H.U.D. has agreed to “monetize the debt” for first time home buyers who are eligible for the $8,000 tax credit, that measly 3.5 % does not even have to come from the home buyer – so once again they are not putting their own money at risk and have nothing to lose if they default on the loan!

That’s less than the amount we’re going to save from Health Care, so it’s all good.

Isn’t it???

The most common factor that millions of foreclosures have in common is zero downpayment, not bad credit. Read WSJ article: Zero down payment, not subprime, causes foreclosures… http://online.wsj.com/article/SB124657539489189043.html

FHA only requires 3.5% down and all of that can be covered by the $8,000 tax credit… which is most likely going to be extended and/or expanded to all buyers and up to $15,000.

True, if that credit goes away, things will get much, much worse in real estate. What to do, what to do.

Quitting easy money and zero downpayment seems to be harder for the public and the gov’t to do than quitting meth (not that I have any experience with that!) :)

painesright on October 9, 2009 at 11:13 AM

There is also a very high correlation of mortgage fraud with foreclosures. The areas of the country with the highest foreclosure rates also have the highest incidence of fraud. Lenders took in thousands of loans they knew were fraudulent, and just packaged them up and sold them to the next sucker looking for high returns.

No,the real disaster will be the steady stream of foreclousures that the loans this idiot agency is making today that will occur in the coming years..they’re back to putting house’s in the hands of people who can’t afford them..

people think that real state has bottomed out..they probably said that in japan circa 1992

smart ..real smart

http://hotair.com/archives/2009/03/24/creator-of-freddie-macs-home-possible-goes-to-fha/

No, we have not learned from our mistakes. Politicians won’t admit that they caused the problem by encouraging out-of-control real estate prices through tax code manipulation and interest rate manipulation. They pointed the finger at “subprime” as a scapegoat from day 1.

This story underscores how badly this crisis was mis-categorized from the very beginning.

It was never a crisis of one particular type of loan or type of credit… it is an EVERY type of loan crisis.

EVERYONE could get a loan for whatever their little heart desired… houses, vacations, cars, extravagant weddings and sweet 16 parties… you name it, we could buy it with cheap money from the Fed and with lax lending standards cheered on by politicians who used easy money as a type of entitlement program.

The most common factor that millions of foreclosures have in common is zero downpayment, not bad credit. Read WSJ article: Zero down payment, not subprime, causes foreclosures… http://online.wsj.com/article/SB124657539489189043.html

FHA only requires 3.5% down and all of that can be covered by the $8,000 tax credit… which is most likely going to be extended and/or expanded to all buyers and up to $15,000.

True, if that credit goes away, things will get much, much worse in real estate. What to do, what to do.

Quitting easy money and zero downpayment seems to be harder for the public and the gov’t to do than quitting meth (not that I have any experience with that!) :)

– BleedsBlue (if it was to comment on this matter)

Christian Conservative on October 9, 2009 at 10:58 AM

I agree. Our side, with the exception of Palin and a couple others, are complete and utter wimps. No guts, no conviction. But then until the electorate votes them out (in favor of someone who will follow the will of the people), nothing will change.

kelley in virginia on October 9, 2009 at 10:26 AM

I have a daughter like that too! lol She too knows this is a wrong.

That’s what’s happening in this country right now. Hey everbody, FREE MONEY!!!

The turds haven’t gone down the drain yet but they are starting to circle the bowl!!

The result is that 13.7 percent of FHA loans are past due, with a foreclosure rate of just under 3 percent. As more loans mature, and if the current trends in employment and home prices are not quickly reversed, we anticipate both of those figures to increase, placing FHA in even greater peril.

Third, Congress needs to make permanent the higher loan limits that would otherwise expire at the end of December. While it may seem counterintuitive at first…

Chairwoman Waters, I would like to close on a personal note. I have been in the mortgage business and working with FHA insured loans since 1978. I bought my first house with an FHA mortgage. I have seen the highs and I have seen the lows and I’ve never given up on FHA.