Oh, the humanity.....
http://www.usatoday.com/money/perfi/housing/2004-01-20-fha_x.htm
In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.
In announcing the plan Monday at a home builders show in Las Vegas, Federal Housing Commissioner John Weicher called the proposal the "most significant FHA initiative in more than a decade." It would lead to 150,000 first-time owners annually, he said.
Nothing-down options are available on the private mortgage market, but, in general, they require the borrower to have pristine credit. Bush's proposed change would extend the nothing-down option to borrowers with blemished credit.
The FHA isn't a direct lender, but guarantees loan payments for mortgages on moderately priced owner-occupied property. The FHA guarantee now permits private lenders to finance as much as 97% of the purchase price of a home for millions of low- and middle-income borrowers.
In the proposal soon to be delivered to Congress, Bush would allow the FHA to guarantee loans for the full purchase price of the home, plus down-payment costs. As a practical matter, the FHA would guarantee mortgages as high as 103% of the value of the underlying property.
The Vegas Decade And The Bipartisan Mortgage Meltdown
"It’s not the particular government program that’s of major interest, it’s the message the Bush Administration was sending.
Federal regulators are supposed to take away the punchbowl when the party gets interesting, but announcing that the President hates down payments, that the Chief Executive feels that requiring people with bad credit to put money down on a house is UnAmerican and probably racist, at a homebuilder’s convention in Las Vegas, well, I’ve exhausted all the punchbowl similes … This is liking filling all the nasal decongestant inhalers at the Betty Ford Clinic with pure pharmaceutical cocaine."
In a bid to boost minority homeownership, President Bush will ask Congress for authority to eliminate the down-payment requirement for Federal Housing Administration loans.
In announcing the plan Monday at a home builders show in Las Vegas, Federal Housing Commissioner John Weicher called the proposal the "most significant FHA initiative in more than a decade." It would lead to 150,000 first-time owners annually, he said.
Nothing-down options are available on the private mortgage market, but, in general, they require the borrower to have pristine credit. Bush's proposed change would extend the nothing-down option to borrowers with blemished credit.
The FHA isn't a direct lender, but guarantees loan payments for mortgages on moderately priced owner-occupied property. The FHA guarantee now permits private lenders to finance as much as 97% of the purchase price of a home for millions of low- and middle-income borrowers.
In the proposal soon to be delivered to Congress, Bush would allow the FHA to guarantee loans for the full purchase price of the home, plus down-payment costs. As a practical matter, the FHA would guarantee mortgages as high as 103% of the value of the underlying property.
The Vegas Decade And The Bipartisan Mortgage Meltdown
"It’s not the particular government program that’s of major interest, it’s the message the Bush Administration was sending.
Federal regulators are supposed to take away the punchbowl when the party gets interesting, but announcing that the President hates down payments, that the Chief Executive feels that requiring people with bad credit to put money down on a house is UnAmerican and probably racist, at a homebuilder’s convention in Las Vegas, well, I’ve exhausted all the punchbowl similes … This is liking filling all the nasal decongestant inhalers at the Betty Ford Clinic with pure pharmaceutical cocaine."
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