Wonderful! Let’s make it even easier for people with bad credit to buy houses they can’t afford, and back up their reckless exhorbitance with the full faith and credit of the US taxpayer.
The legislation, approved 93-1, would allow the Federal Housing Administration to back refinanced loans for borrowers who are delinquent on payments because their mortgages are resetting to sharply higher rates from low initial “teaser” levels. …
Allowing the federal government to insure more and bigger loans should help provide some relief and ease the credit crunch. …
The Senate bill would also lower the FHA down payment requirement from 3 percent to 1.5 percent…”
– Senate Votes to Help Strapped Homeowners, Associated Press
What’s wrong with telling people not to buy houses they can’t afford in the first place? Owning a home is not an entitlement. Neither is getting financing for something you can’t afford. But our generous government has just made it so. Hallelujah! And when these people default on their FHA loans because they really did buy houses that were far more expensive than they can afford, who pays off their “federally insured” loans? The taxpayer! After all, isn’t that what we’re here for? To pay off other people’s bad debts?
I feel like such a gullible mark for living within my means all my life.