People buy overpriced homes that they can’t ultimately afford because lenders are either incentivized or threatened into taking these risks. Take away this safety net and lenders are going to do what they are best at- assessing risk which they can afford against the demand for loans.
I think without the government meddling, nearly everyone would be required to pay 20% down on a home, making most loans solvent in case of an emergency and mitigating another meltdown. I worked hard to save up my 20% down payment and eschewed any government-backed mortgage as far as it was in my power. I’m sitting good now.
When I was young, I thought it was a good idea for the government to use tax policy to encourage good things....buying a home, getting married, having children.
As I got older I realized how dangerous it was for any government to decide what should be encouraged. I don’t trust anyone in Washington to do the right thing.
I want to vomit when I hear business people talk.....the economy will grow, prosperity will flourish and tax revenues will actually go up.......presumably to give us more government. No thanks. Starve Washington. Gut the Government!