The economic lessons of the past few years are spoken of beautifully in a sweet little story from my youth that goes a little like this;
If you build a house of straw or sticks...eventually you will be left out in the cold, without a home and the wolf will be chasing you down. BUT, if you build your house of bricks...slowly, surely and steadily, you will be safe and secure and you can eat wolf-stew for dinner and be merry.
Who knew??? The Three Little Pigs is one of the greatest economic theory books of all time!

As an agent who remembers the days when marginal (but eager) home-buyer's had only a few choices when it came to financing a home, my perspective on the condition of today's market is shadowed by a rememberance of the 3% down FHA loan. The borrower had to meet the requirements of an FHA backed loan as did THE HOME they were purchasing. Gee whiz, it does not seem like a stretch to make sure that the property-used as security for the loan-meets some kind of standard of quality. The FHA school of thought was; If it was tough for the eager home-buyer to come up with 3% down...think of how tough it would be for them to come up with $1,000's if the roof needed to be replaced or the furnace went out or the foundation needed repair! This was smart lending, it was common sense and was good for the overall health of our economy.

As Realtors, maybe we were not able to get marginal credit buyers into homes as quickly, but those we did sell were to REAL Buyers, with REAL housing goals, ready for REAL long-term home ownership.

It always felt GREAT to bring a buyer to the point where they could purchase with an FHA loan. There was a huge sense of accomplishment for all involved when the 3% seed money was in the bank and the buyer's were ready to get out and BUY. There was a whole world of pride tied up in that down-payment, and it showed in the way the new home-owners FELT about their investment. Heck, they were INVESTED in it! (What a concept in light of the sub-prime mess our economy now faces!)

With all of that shared, I am sure you will understand why I was happy to read the article titled "Good Bye Sub-Prime, Hello FHA." I think a return to some solid lending practices from "the good ol' days" will ultimately be good for all of us. http://money.cnn.com/2007/10/15/real_estate/mba/index.htm?section=money_topstories
I, for one, say enthusiastically..."Hello FHA!".

On a personal note...I happen to enjoy the flavor of wolf-stew! :)

Live Good. Be Happy. Be Invested. -Mimi