FHA = subprime home loan crisis all over again

[Anonymous No.58445633]

Why are FHA home loans legal, again?
>FHA loan minimums as of 2024
>FICO score at least 580 (legitimate subprime territory, well below even fair credit) = 3.5% down payment.
>FICO score between 500 and 579 (upper end of can't even get a credit card, lucky to get approved for a car loan) = 10% down payment.
>Debt-to-Income Ratio < 43%.
It's like they want 2008 to happen again.
Not to mention all of these loans go to deadbeats that destroy the house, invite crime and blight, and they eventually default or sell it to a flipper to avoid the foreclosure hit to their already abysmal credit

[Anonymous No.58445643]

>>58445633
Doesn't the mandatory mortgage insurance prevent this

[Anonymous No.58445651]

>>58445643
Nope, a friend's grandparents are stuck in a neighborhood that is being bombed with these loans for about the last 10 years. People who leave their dogs out barking, refuse to cut the lawns, drive around with booming bass stereos .etc flocking in. House across from theirs was loaded to the brim with scrap metal & junk appliances when the wifebeater & tats crew hurriedly sold it to a flipper.

[Anonymous No.58445655]

>>58445651
And without fail, whenever I look up the mortgage docs for such a property...FHA, every damn time. Every third or fourth house I'd say.

[Anonymous No.58445663]

>>58445643
Does that cover the premium on CMBS's which are effectively just misrepresented MBS's?

[Anonymous No.58446919]

bump