[quote=briansd1]. . . IMHO, the government should get completely out of the mortgage guarantee business for anything but mortgages under $200,000.
The banks will have to set underwriting standards based on their own risk assessments. If buyers can’t qualify for loans, then tough luck. They can continue to save and buy later.
If buyers want loans, they have to comply with the documentation process lenders require. . . [/quote]
brian, I agree with these provisions. I, too, think your idea of $200K for a “government guarantee” is a good upper limit for a first-time buyer loan in a typically “underserved area” that a “mainstream” lender may not want to loan in.
