Quote:
Originally Posted by MediaArtist
No, the chief reason why FHA needs a bailout is because 3.5% down is statistically proving untenable and inherently flawed as a mortgage product. Now we all get to pay for it.
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I'm not familiar with how FHA loans at all, for forgive my ignorance... but doesn't one have to pay a pretty penny every month as "insurance" ? Money that doesn't actually go towards the equity of the house, but is a buffer due to the low downpayment?