Posted on | October 19, 2009 | 2 Comments
FHA, VA or USDA home mortgage loans have financed 59% of this year’s sales according to a recent survey of home builders. Diana Olick of CNBC presents a great chart of the survey completed by John Burns Real Estate Consulting. The chart shows the regional breakdown of the government’s efforts to help the housing market.
Just a few short years, after the beginning of the Subprime Mortgage Crisis, we are now finding out that 59% of new home buyers are putting less than 5% down on their homes. This is a very scary bit of information; haven’t we seen this movie before (House of Cards)? Home buyers putting little money down with government assistance because mortgage rates are low! Ugh! We continue to make the same mistakes over and over again; can someone point this out to our president?
Unfortunately history is repeating itself but WAY too quickly. The first time home buyers tax credit along with all the government assistance out there is causing first time buyers to feel that the “must” buy a home in this environment. Once again, I recall this happening not too long ago. I would like to hear what Peter Schiff and Ron Paul have to say about this; maybe we will get some commentary on it.
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Author: Jesse Wojdylo