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Politics : View from the Center and Left

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To: Mary Cluney who wrote (125536)	11/26/2009 11:17:01 AM
From: slacker711	Read Replies (2) of 543205

My sense is that the demand IS there. The financing is not and there are people with jobs looking for financing. This statement doesnt match the current reality. There is plenty of financing for anybody with decent credit. You dont even need to have a 20% down payment. Loans are still going out with 3% down....courtesy of the FHA. The FHA has fallen below its legal reserve limits but that doesnt seem to be stopping it giving out loans hand over fist. Here are just two articles, but there are a ton more. The CEO of Toll, a company that is benefiting from this lending, called it a train-wreck and compares the FHA lending to subprime. bloomberg.com An article about how the FHA is enabling speculation to return in real-estate. nytimes.com With F.H.A. Help, Easy Loans in Expensive Areas By DAVID STREITFELD Published: November 19, 2009 SAN FRANCISCO — In January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston. A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary. “It was kind of crazy we could get this big a loan,” said Mr. Rowland, 27. “If a government official came out here, I would slap him a high-five.”

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