[reaganaut1]

Encouraging people to buy homes without a substantial down payment is idiotic. Please write to your congressman to oppose this.

[edcoil]

Isn’t this the same as the huge freddy mac scandal and now want it to expand to the entire industry?

[jennyjenny]

The VA has offered 100% financing to veterans for years.

[Always Right]

Among the options being discussed in Congress is eliminating or reducing the required 3% down payment, raising the size of the loans FHA can insure to as much as $417,000 from $362,790, and being able to charge insurance premiums based on a borrower's risk instead of a one-size-fits-all rate.

Nothing sounds unreasonable. It is not like they are giving free money to bail out individuals. They are basing premiums on borrower's risk which is the market-based thing to do. Increasing the limit that FHA can insure is necessary for many markets like California, where you can't buy anything for under $400K. Eliminating the 3% down just competes against other loan options. It is not like they are loaning 125% of the value. If the people qualify under tougher standards, it makes sense. Besides, if this can help the housing market and reduce the subprime worries, it will reduce the pressure on the fed to lower the interest rates too much which will be much more inflationary. I like the idea.

[Moonman62]

Why did you out “at taxpayer expense” in the title?