Sounds like they’ve learned little, if nothing during the real estate meltdown. According to the NY Times the FHA is making easy money for big mortgages available to those with virtually no cash down. It recently loaned three nearly cashless twenty-something guys the scratch to buy a 2 unit apartment building for close to $1 million. Their collective downpayment? Around $33K, or $11K a piece. Virtually no skin in the game. Oy.
A week ago, he and a couple of buddies bought a two-unit apartment building for nearly a million dollars. They had only a little cash to bring to the table but, with the federal government insuring the transaction, a large down payment was not necessary.
“It was kind of crazy we could get this big a loan,” said Mr. Rowland, 27. “If a government official came out here, I would slap him a high-five.”…..
With F.H.A. Help, Easy Loans in Expensive Areas – NY Times
Tags: Accidents waiting to happen, Credit Crunch, Easy money, FHA, Meltdowns, Real Estate
