The FHA Death Nail

 

I read an op ed piece in the WSJ yesterday that explained how a home buyer using the first-time home buyer’s tax credit can purchase a $200K home with $0 down (FHA requires 3.5% down).  This news video clip summarizes the main pointsHere is an article directly from the FHA website that confirms this is possible.  Toward the end of the FHA-posted article, the author mentions a request/need for additional funding.  The FHA already has extremely thin capital reserves and now they’re dishing out mortgages to people who qualify (make less than $125K a year) who do not have to put down a single dollar.  People are going to be walking away from these homes and defaulting on the tax-payer backed mortgages like there’s no tomorrow.  It’s policies like this that got us into the mess in the first place.  -Billy Ray

Advertisements

Comments are closed.