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FTA: > “‘Nothing Down’ Plan Proves Undoing of Landowner,” read one headline in The Honolulu Advertiser. Turns out those who couldn’t afford a down payment coul

FTA: > “‘Nothing Down’ Plan Proves Undoing of Landowner,” read one headline in The Honolulu Advertiser. Turns out those who couldn’t afford a down payment couldn’t keep up with monthly ones either. Imagine that.

lotsofpulp 3y ago
Yet the federal US government subsidizes 0% down mortgages: https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program https://www.rd.usda.gov/programs-services/single-family-hous... >The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify! https://www.va.gov/housing-assistance/home-loans/ https://www.va.gov/housing-assistance/home-loans/ >For example, nearly 90% of VA-backed loans are made with no down payment. Not far off are 3.5% down payment mortgages: https://www.hud.gov/buying/loans https://www.hud.gov/buying/loans
- empath-nirvana 3y ago
  The VA-backed loans are a benefit for joining the military. It's not exactly charity, but they certainly aren't doing it because it's a good financial investment. It's actually quite hard to get a low/no money down mortgage, even with those programs, there are limits to the total price of the house, for example.
  - lotsofpulp 3y ago
    None of it is charity to (newer) homeowners. If it was, they would just give people cash. It is a subsidy to people who already own property, by creating a greater supply of buyers who can pay more.

lotsofpulp 3y ago

Yet the federal US government subsidizes 0% down mortgages: https://www.rd.usda.gov/programs-services/single-family-housing-programs/single-family-housing-guaranteed-loan-program https://www.rd.usda.gov/programs-services/single-family-hous... >The Section 502 Guaranteed Loan Program assists approved lenders in providing low- and moderate-income households the opportunity to own adequate, modest, decent, safe and sanitary dwellings as their primary residence in eligible rural areas. Eligible applicants may purchase, build, rehabilitate, improve or relocate a dwelling in an eligible rural area with 100% financing. The program provides a 90% loan note guarantee to approved lenders in order to reduce the risk of extending 100% loans to eligible rural homebuyers – so no money down for those who qualify! https://www.va.gov/housing-assistance/home-loans/ https://www.va.gov/housing-assistance/home-loans/ >For example, nearly 90% of VA-backed loans are made with no down payment. Not far off are 3.5% down payment mortgages: https://www.hud.gov/buying/loans https://www.hud.gov/buying/loans

empath-nirvana 3y ago
The VA-backed loans are a benefit for joining the military. It's not exactly charity, but they certainly aren't doing it because it's a good financial investment. It's actually quite hard to get a low/no money down mortgage, even with those programs, there are limits to the total price of the house, for example.
- lotsofpulp 3y ago
  None of it is charity to (newer) homeowners. If it was, they would just give people cash. It is a subsidy to people who already own property, by creating a greater supply of buyers who can pay more.