I know how happy some are now the government has raised the FHA loan amounts but when you want to talk about Government Bailouts - THIS IS IT. How can a government criticize any lending program with such standards as proposed (exist) as in FHA? I am sorry they need a reality check or the actual government(we the people) are going to lose the country.
For those of you who are not aware of the qualifications (lack of) for FHA borrowers let me give you just a few NO MINIMUM FICO (a.k.a. no bad credit applicant left behind), as little as 3% down, NO Maximum DTI, cash out refinances to 85%, rate and term refinances to 97%, ALL FHA loans are exempt from declining value areas, NO CASH RESERVES required (is this the worst sub prime program rewritten?????). It goes on but quite frankly I need to stop and email my congress person because I think someone has a misguided plan for recovery of the housing industry. Government can't fix it, they only create a problem and exacerbate it through congressional legislation and their "home remedies" (unfounded on sound economic concepts and practical application).
I am sorry FHA is no better than the industry's worst sub prime loan program only now it's a guaranteed Government BAIL OUT from the very beginning. It's not good for the industry or for the taxpayer.
But you can buy a HUD foreclosure for only $100 down payment, now that's a sweet deal.
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