Subculture

http://www.nytimes.com/2010/09/05/us...ge.html?src=me

As long as the lending requirements remain tight and this doesn't expand to problematic proportions it could do some good to get the housing market headed in the right direction again. smile.gif

supercow

didn't learn their lesson last time? huh.gif

I think this can work under two assumptions:

1. The loan officer isn't greedy.
2. The People getting the loan aren't stupid.


What screwed everything up before was systems like this where they were giving home loans to people with low income and their payment was 99% interest and that payment was 50-75% of their income. Bad combination, the only way for that to work out is if quickly down the road their income was to double. If the loan officers do a good job (weed out people who won't pay instead of giving a loan to anything that moves to get their commission) and people don't try to buy houses outside of their income it'll be just fine(25% of your monthly income towards mortgage).

Stocker

Don't forget the leftists (read Democrats) in Congress passed laws that made it easy for racist pressure groups to practically force banks to lend to people they knew could never pay off their loans.

Demonio

The problem is that people are imprudent. They can't wait until they have saved up enough money to put down a decent payment. They need the new car NOW. They need the newest phone NOW. f*ck waiting until buying makes financial sense.

The fact will always remain that there is a far higher rate of failures with mortgages with nothing down than there is with 20% down. People might walk away from something where they have no skin in the game, but they would be far less likely to walk away from 20k or so. That's just common sense.

This will be another disaster in 5-10 years.

faithofadragon

ive never put a down payment on anything i own (house, any of my 3 cars that ive bought in the last 4 years)

people CAN be responsible enough to manage buying stuff

sadly most people just take advantage of the system oh well just means when its time to buy another house ill have the option to not put money down again lol