[quote=HLS](…) I don’t think you will ever see FHA @ 10% down. The housing market would collapse (…)there will be no shortage of intervention on the way down.

The only fix for the housing mess is accelerated foreclosures not delaying them. Modifications are just a delay.(…)Prices falling IS the recovery, back to reality.(…)Foreclosures are not the problem, foreclosures are the solution. Houses wont sit empty, they will be purchased for what they are worth and what buyers can afford to qualify for at the time.

Don’t forget, mortgage rates are near the lowest ever, yet millions cannot qualify for one reason or another.[/quote]

But in that case, making the FHA harder & more expensive to get would mean fewer people would qualify and that will have an impact on the sales and, eventually, sales prices, right?
I think making the FHA requirements at least 5% down and squeaky clean credit, and perhaps increasing the mortgage insurance, would be (part of) a solution, don’t you? If they make the FHA GRADUALLY more expensive, perhaps in a tiered fashion like they alluded to, the market may not collapse and it may just go down slowly…

I am hoping that the gov’t will start moving this way in the right direction… the bailouts cannot continue ad infinitum…