The Real Estate Bloggers

New Government Program – Only a 1,000 Dollar Down Payment?

Posted: 06 Aug 2010 06:43 AM PDT

Crazywoman Haven’t we heard this song before? “You too can get into your very own home with only $1,000 down! Step right up, step right up boys and girls…”

If my memory does not deceive me that caused the mess the housing market is still in today. Yet our illustrious Federal Government is insisting this is a path for revitalizing the housing market.

It sounds too good to be true. But it is true. This offer does not come from a subprime lender, looking to reel in thousands of unqualified and ill-advised homebuyers, only to slap them with add-ons, fees and variable rates. It is not a teaser or a trick. The advertisement references a program initiated by the National Council of State Housing Agencies and Fannie Mae, the taxpayer-backed, government-sponsored enterprise that buys up mortgages from lending banks.
The pilot program is called “Affordable Advantage,” and it has now been adopted by three states — Massachusetts, Wisconsin and Idaho. (Other states, such as Pennsylvania, California and Colorado, have similar state programs.) The initiative is small, reaching just a few hundred people so far. But it is looking to expand. Given the dangers of these types of mortgages and the specter of the housing bubble, where unconventional loans wreaked disaster, it is also raising questions from wary housing experts and legislators.

As the previous article stated, this is not coming from hucksters selling teaser rates and subprime loans with huge fees. This is coming straight from our government. The ones that are supposed to be regulating industry, not leading it off the cliff.

Industry has been burned and is backing off. When the hucksters look at the government as reckless you know we have troubles.

What next, the sheriffs will turn into the drug dealers? That is what National Council of State Housing Agencies and Fannie Mae look like right now.

The supposed voices of reason are the ones seducing the unfortunate into more misery.

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New Government Program – Only a 1,000 Dollar Down Payment?