HUD Still Pushing Risky Loans

You can't get a bank to issue you a loan like what you could get in 2006, but there's always the government. Right on the Housing and Urban Development website, it notes:

The FHA might be just what you need. Your down payment can be as low as 3% of the purchase price, and most of your closing costs and fees can be included in the loan. Available on 1-4 unit properties.

They are referencing the 203(b) program, and happily notes that closing costs for the loan, can be rolled up into financing, so if you have $6k, you can buy a $200k property, and the government takes the risk. I hear that very few banks want to do these loans, even though HUD is guaranteeing them.

I suppose later this year, at some regular meeting in the bowels of the HUD, someone will mention the subprime crisis, and how that might affect some of their homeownership policies.