[quote=FormerSanDiegan]
Red herring. Rich a-holes do not need Fannie Mae backed loans. They can buy with cash or corporate/business financing arrangements.[/quote]
I agree. The rich do not need subsidy by the Federal Government. Why should we help them get richer? Couple extra low cost loans to help deversify the portfolio? This helps the public good?
[quote=FormerSanDiegan]
Those who are hindered by this rule are those who buy a second house and rent out their first house as a rental property. These are your typical Mom & Pop landlords. Unlike the corporate-run large box apartment complexes, these are the people who typically rent out single-family homes. These are the folks you rent from that never raise the rent until you leave.
Perhaps you are right, maybe we should not encourage the mom & pops. The better approach is to allow all investment property to end up in the hands of corporate entities. To hell with the little guy.
[/quote]
I kinda think the little guy is the guy who is scraping buy to get a first 1200sqft house, not the people buying a 3500 sqft house with a pool and view.
Also, if it really was that good of an investment, people would still buy in and become LL’s instead of waiting for corporates to buy. Only thing is; they would have to compete with FTB’s with Gov support (GSE loans). Or they could save up alot of money and put a big DP on their move up house and get a loan outside the GSE system. Usually those are available, so it wouldn’t be impossible for people to be both a move up buyer and a LL. Rent and ownership would stay alot more equal than it is curently, and housing in entry level areas would turn over alot more frequently allowing the next generation in affordably.
