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The US already has FHA loans that allow you to buy property with as little as 3.5% down, with the rest paid back over 30 years. They're backed by the government
by MichaelBurge 11y ago
The US already has FHA loans that allow you to buy property with as little as 3.5% down, with the rest paid back over 30 years. They're backed by the government, so it isn't risky for the banks to give out the loans. My interest rate was 3.2%
I remember hearing that before this program was put in, you had to put 50% down on a house with the rest at 9-12% interest paid back over 5 years.
There's also nothing stopping people from pooling money together, investing in an apartment complex, and converting it to condominiums. You'd have to deal with people who don't pay, but I imagine you could get a lender to help you out if you had an entire community ready to pay them back.
- Spooky23 11y agoThere are lots of barriers actually. These folks are usually poorly educated and pretty clueless about ownership and financing. These are folks using check cashing, payday loans and title loans. They are caught in a cycle of learned helplessness and poverty. You need to give them support in the form of counseling and other things to get them to be successful owners.
- digi_owl 11y agoLoans will never fix the housing market. The only real fix is for some entity to flood the market by building and selling houses at a fixed price. What housing loans do is simply inflating and re-inflating property bubbles.