 |
Rich people need FHA loans, too
By: Mark Hemingway
Commentary Staff Writer
11/20/09 5:07 PM EST
So let me get this straight, the government created the housing market crash by insuring a lot of really expensive, little-to-no money down mortgages for people that couldn't afford them. Now that the real estate market is in the dumps, the government is trying to encourage recovery by insuring a lot of really expensive, little-to-no money down mortgages for people who don't need the help?:
In January, Mike Rowland was so broke that he had to raid his retirement savings to move here from Boston.
A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary.
“It was kind of crazy we could get this big a loan,” said Mr. Rowland, 27. “If a government official came out here, I would slap him a high-five.”
In its efforts to prop up a shattered housing market, the government is greatly extending its traditional support of real estate, including guaranteeing the mortgages of middle-class and even upper-class buyers against default.
More from Mark Hemingway
- Controversial National Labor Relations Board nominee Craig Becker shot down in Senate
- Will Dems try and slip card check legislation into upcoming jobs bill?
- Bloomberg obit headline calls Murtha 'Supporter of Troops'?
- Democratic Senator Ben Nelson to filibuster key nominee favored by Big Labor
- White House wants to make filibuster a campaign issue?
Follow The Examiner
