Great! Who says there is no legitimate subprime loan NOW?

As I recall, there was an article at AR 2 years ago, trying to provide an effective rescue program when claiming that all FED TARP or bailout plans are useless. 

The article seemed and sounded to be joke-like.   It literally claimed, in short: "the best way to solve this real estate bubble is, for our government, to create a bigger subprime rush by giving out a 2nd run of subprime 'no VOE, VOD, VOC' loans to everyone in order to continue keeping housing price flying up in the blue sky.  In so doing, you are okay, I am okay, we are okay.  Everyone makes money by investing in RE or flipping a property.  Our economy is saved by a bigger consumer spending." 

Nobody take it seriously back then, right?

Everyone could say that the formula is crazily "ridiculous" after the shockwave of subprime loan created modern banking disaster. 

But now take a look with your deep breath to look at the email I just got this morning.  Here is the identical project given and implemented into a fact by our government. 

After all trial and error, the big banks are saved at expense of taxpayer; but lending is shrinking 9% and credit is tight to death.  The realty seems "No person is good, to qualify a loan."  After their friends, those big fat cats, ate big chunk of steak and have their bonus increased 17%, or 31% some said, for this year, our government people finally have some spare time to give their poor taxpayers a skinny bone.  They want to do something fantastic or extra-ordinary to help the middle class before it is too late (which could lead to a taxpayer's revolt). 

Get serious, it is no joke at all to follow the idea of the AR article, right?  Maybe someday they will also realize my idea of "social pardon," is very"simple and practical" to make it their policy to help the American poor, I hope?  (Note: refer to my article Let Every Joe the Plumber's Household Declare "Social Bankruptcy": $20,000 grant.)

The email has its title: "New Program: Buy A Home for Only 1% Down!" and a sub-title: "Plus: grant program giving 22% of Purchase price."  It appears that a buyer get something for nothing.  No, it is not only that, but he or she gets "paid" a handsome "free cash reward with no tax." 

I'd like to say it is more generous than those stingy subprime loan bankers.  Who says there is a war led by our government to against the middle class?

****** The email *****

 Neighborhood Stabilization Program

Arizona - Feb 25, 2010 The great news is that there is a new FHA loan program that allows home buyers to purchase a new home with only a 1% down payment. The FHA loan requirements haven't changed - they still require a 3.5% down payment, but this new program allows people to use government money to pay for 2.5% of the 3.5% down payment requirement - effectively leaving only 1% that a new home buyer must put down.

The new program is called the Neighborhood Stabilization Program - and it even gets better than just having to put 1% down! There is a new grant program that will pay up to 22% of your new home purchase price and this amount DOES NOT NEED TO BE PAID BACK! This is in addition to the $8,000 tax credit program -- also these funds do not need to be paid back.

Here are just a few of the important details regarding the Neighborhood Stabilization Program:

• If you own a residence, you must be leasing your primary residence at least 12 months before applying for the program.
• You must use a participating lender -- email me for a list of approved lenders as there are only a few in the Valley.
• You must attend and complete an 8 hour Homebuyer Education Class provided by one of the ADOH participating homebuyer counseling agencies. (A list will be provided by your lender once you begin the process.)
• The property you purchase must be your primary residence.
• You must have a maximum debt to income ratio of 43% or less.
• You can use any type of financing with the NSP program - including paying cash. That means you can still get up to 22% of the purchase price even if you pay cash for the house.
• You must be approved and have your paperwork completed for the program prior to submitting an offer on a house.

Neighborhood Stabilization Eligible Property Types:

• Foreclosed properties only. A property is considered "foreclosed upon" at the point that the mortgage or tax foreclosure is complete.
• One unit detached single family homes, condos and townhomes.
• The property must be vacant at time of listing.

Neighborhood Stabilization Program Purchase Price Limits:

Neighborhood Stabilization Program Income Limits:

In order to qualify for the program, you must have a gross income (the total income before taxes, health care costs, social security, etc.) of no more than 120 percent of the average median income for the county they want to purchase a foreclosed house in.

Neighborhood Stabilization Program: Too Good To Be True?

1. Up to 22 percent of purchase price
2. All loans are forgivable after a period of time based on the amount of the loan. -- 5 years for assistance of $15,000 or less; 10 years for assistance of $15,001-$40,000 -- 15 years for assistance of more than $40,000
3. All loans are zero percent interest with no monthly payment.
4. The balance of the loan is forgiven at the completion of the term.

Please email or call me for more details concerning this exciting new program.