Politicians Who Promote No Money Down Mortgages

Forbes reports:

In May, the House Financial Services Committee passed an FHA modernization bill that would eliminate the down payment minimum for borrowers. It would also increase the maximum loan term from 30 to 40 years and increase the cap on FHA-backed reverse mortgages (which let borrowers convert some of their equity into cash) from $362,790 to $417,000. Sen. Schumer has also introduced stand-alone legislation to increase FHA-backed loan amounts.

The Bush administration supports an increase in loan limits, and it is even promoting the elimination of the down payment requirement.

"FHA's existing 3% down payment requirement does not meet the demands of today's marketplace, where most first-time homebuyers put down 2% or less," says Stephen O'Halloran, a HUD spokesman.

There you have it,leaders in artificial leverage.If you traded soybean futures they'd make you put money down.It's really is time to separate housing from state.