Those who don’t learn from the past are condemned to repeat it.
This is great thinking.....they create the conditions causing Americans to lose their savings & their homes & then lower interest rates to convince them to spend money we still don’t have,in addition to creating interest rates on existing savings accounts that are so low they are virtually worthless. Barack’s plan seems to be moving forward nicely.
I think we already tried this...
Let’s double down on dumb!
Wash. Rinse. Repeat.
They can already do that with FHA and USDA backed loans (yes the USDA has a home loan program)
3% down.... 30 year note. People are just dumb. I’m a Realtor. I see it everyday. People call you and want to buy a house, and they have about $150.00 saved at the moment. (until their cable bill comes in) But mom and dad is going to gift them the 3% they need to put down... and the government will back the 30 year loan. I mean, I have to sell to people like that or I’ll lose my Real Estate License... but... I sure like to do business with people who have money and are buying something they can afford. People I know are going into a deal that will end up successful.
How to Asset Strip a Nation:
Offer home loans to people that cannot afford it, require little or nothing down so they think they can. Do this over and over until the foreclosures are too much and it crashes the housing market. The taxpayers Bail out ALL the Banks and Wall Street for the Bad Loans, and now the Banks and Wall Street own the Property for FREE. Resell the property and make 100% Profit.
Banks aren’t stupid. They know the government will bail them out every time. “Too big to fail”.
You get more of what you subsidize. If you subsidize risky behavior, as the government did by bailing out all the foolish banks, you will get more foolishness.
This is no surprise.
What could possibly go wrong with liberalizing those silly uptight mortgage rules?
I’m feeling old. 20% used to be the standard.
And the definition of insanity is.....
I bought my home with zero amount down. (VA backed loan) The 30 year mortgage was paid off in 20 years.
It is not the amount of down payment as much as the ability to make the payments. Since my home was not an investment but a place to live, I did not use it as a ATM and so when the housing market took a nose dive, I lost money on paper, but I did not lose my home. I do not care how much my home is worth, only that I maintain it, pay my taxes, and never, ever borrow against it.
This will become 1% and then zero after enough reports come out indicating that not enough “people of color” are getting mortgages.
Designed to help more low-income and first-time buyers afford homes.
Just another part of Obama’s amnesty plan.
Housing Collapse II: Electric Boogaloo!
PING!
And now we're going to start the whole thing over again with 3% down loans? If you don't have a good piece of skin in the game in the form of an equity down payment, the loan will default sooner or later and we'll be right back in the same mess we haven't even recovered from yet.
Stupid is, as stupid does is the motto of the federal government, especially under the democRATS.
It was 3% for a few years ago and then they raised to 5%. Big deal. Even a $150k house, which was bottom cost in Denver when the market crashed, would require $4,500 down plus some closing costs, about $7,000 in total. Most people can’t put together $1,000, much less $7,000.
Less than 20% down is criminal!!!!!