December 31, 2012,
Category: Home Purchasing, Release with 3 comments
Do you think the housing market would crash?
People will actually have to have 10% to 20% down to buy a house.
Also do away with VA loans and USDA rural loans which require 0% down.
What would the impact be? Devastating?
Home buyers would no longer get something for nothing and the foreclosure rate would drop.
I don’t think the FHA loan would be nearly as devastating as the loss of the mortgage interest deduction. Let’s face it, without it most people would not be able to afford to buy a home and others would not be able to afford to keep their homes. That tax benefit allows people to get into the home in the first place and make it more affordable than renting.
The VA doesn’t make loans for anything.
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