FHA Loans Promote Massive Leverage: Housing Crash Hasn't Prevented Big Risk Subsidy From Uncle Sam

Here's the FHA website promoting massive leverage in the housing market:

* Minimal Down Payment and Closing Costs.

* Downpayment less than 3.5% of Sales Price
* 100% Financing options available*
* Gift for downpayment and closing costs allowed.
* No reserves or required.
* FHA regulated closing costs.
* Seller can credit up to 6% of sales price towards buyers costs.

This doesn't bother Nancy Pelosi.