When the lending system works to get rules softened, yes it will allow credit worthy borrowers more access, but unfortunately there are those that should never be given loans of that magnitude. I have no problem with people that are credit worthy who really do need the help. But, some of the schemes the lobbyists and lenders get into the pipeline end up crashing the system at the first downturn in the economy. Especially when borrowers have no skin in the game because the downs are near to nothing. I have seen this cycle several times throughout the years - boom and bust because of loosened credit to stimulate the markets.
Adjustable interest rates should not be allowed. I never understood why being "under water" on a house would force one into default any more than being under water on a car loan was what happens the day you bought it and drove it off the lot and you made the payments regardless.
The problem for new buyers is the down-payment. With house costs in some areas averaging $400,000, that's $40,000 plus closing costs. I assume a GI loan still bypasses this requirement.
High costs of housing is driven by corporate buying (blackrock) and illegal aliens. If it's driven by economic expansion, there are salaries commensurate with price.
I have never understood adjustable rates either. It brings financial instability when those rates change to the upside. Too many homebuyers, especially young people, are very financially ignorant and live with the idea that life never changes. They take on loans on a shoestring that if just one thing happens, they are at risk of losing their home. I have witnessed this play out time and time again.
My philosophy has always been that owning a home does not take away from, nor add to who I am. It does not validate who I am as a person. It is just a place to live. Technically, until that loan is paid off, you don't own the home - the bank does. The equity only starts to increase once you hit the halfway mark. Until then, it's all interest.
If owning a home is going to make living my life more financially difficult, I pass. When everyone was buying overpriced homes before the crash, I did the opposite despite immense pressure from everywhere to jump in. FOMO doesn't impact me. I waited for the crash and bought my home at the dip. The mortgage even came in lower than what I was paying on rent. That was a move that made sense for me. Everyone I knew that jumped in with the crowd all lost those homes. I knew people that had mortgage payments so high that they slept on a mattress in the middle of the floor and sat in yard chairs because they couldn't afford furniture - all just to say they owned a home. They simply could not afford to have that loan in the first place.
You are right. Until something is done to put a leash on the forces that continue to artificially drive up costs, simply loosening loan structures to allow more people to take on the inflated costs of home ownership, the cycles of unsuspecting home buyers left holding the bag in the end will continue. It is sad and I am not sure what the answers for this crisis will be going forward.
The deregulation that will actually help is to make it illegal to restrict what people can build and live in on their own property
You want to go to Home Depot and buy a 10,000 shed foam insulation and a 500 mini split and poop in a bucket the government should not be able to say a fucking thing about it
Someone in ga owned 10 acres and pulled his rv on it when he lost his job
Middle of nowhere and they threatened to take everything if he didn’t move to a licensed park
verry Leary of any deregulation, remember the mortgage problems 20 years ago .
I guess the lessons from the subprime market debacle were not learned.
Not to mention: more usury as a cure for not enough usury?
yep
Problem for "credit worthy" borrowers. They have been locked out. That is not the subprime market.
When the lending system works to get rules softened, yes it will allow credit worthy borrowers more access, but unfortunately there are those that should never be given loans of that magnitude. I have no problem with people that are credit worthy who really do need the help. But, some of the schemes the lobbyists and lenders get into the pipeline end up crashing the system at the first downturn in the economy. Especially when borrowers have no skin in the game because the downs are near to nothing. I have seen this cycle several times throughout the years - boom and bust because of loosened credit to stimulate the markets.
Adjustable interest rates should not be allowed. I never understood why being "under water" on a house would force one into default any more than being under water on a car loan was what happens the day you bought it and drove it off the lot and you made the payments regardless.
The problem for new buyers is the down-payment. With house costs in some areas averaging $400,000, that's $40,000 plus closing costs. I assume a GI loan still bypasses this requirement.
High costs of housing is driven by corporate buying (blackrock) and illegal aliens. If it's driven by economic expansion, there are salaries commensurate with price.
I have never understood adjustable rates either. It brings financial instability when those rates change to the upside. Too many homebuyers, especially young people, are very financially ignorant and live with the idea that life never changes. They take on loans on a shoestring that if just one thing happens, they are at risk of losing their home. I have witnessed this play out time and time again.
My philosophy has always been that owning a home does not take away from, nor add to who I am. It does not validate who I am as a person. It is just a place to live. Technically, until that loan is paid off, you don't own the home - the bank does. The equity only starts to increase once you hit the halfway mark. Until then, it's all interest.
If owning a home is going to make living my life more financially difficult, I pass. When everyone was buying overpriced homes before the crash, I did the opposite despite immense pressure from everywhere to jump in. FOMO doesn't impact me. I waited for the crash and bought my home at the dip. The mortgage even came in lower than what I was paying on rent. That was a move that made sense for me. Everyone I knew that jumped in with the crowd all lost those homes. I knew people that had mortgage payments so high that they slept on a mattress in the middle of the floor and sat in yard chairs because they couldn't afford furniture - all just to say they owned a home. They simply could not afford to have that loan in the first place.
You are right. Until something is done to put a leash on the forces that continue to artificially drive up costs, simply loosening loan structures to allow more people to take on the inflated costs of home ownership, the cycles of unsuspecting home buyers left holding the bag in the end will continue. It is sad and I am not sure what the answers for this crisis will be going forward.
The deregulation that will actually help is to make it illegal to restrict what people can build and live in on their own property
You want to go to Home Depot and buy a 10,000 shed foam insulation and a 500 mini split and poop in a bucket the government should not be able to say a fucking thing about it
Someone in ga owned 10 acres and pulled his rv on it when he lost his job
Middle of nowhere and they threatened to take everything if he didn’t move to a licensed park
Very nice win. I know young guys struggling to buy a house.
https://x.com/PressSec/status/2032540765096689916?s=20
https://www.whitehouse.gov/fact-sheets/2026/03/fact-sheet-president-donald-j-trump-promotes-access-to-mortgage-credit/