TG – These loans have been around for a long time. Just the packaging of them together was the problem. I think there were/are first time homebuying loans w/3% down w/FHA, no? Developers used short-term I/O loans. I’m self-employed and the only thing I can do is bring 1099s and bank statements to support my tax docs which after write-offs showed little income. I had to do some kind of no-doc loan, but supported.
The cominbation of the loans together was the problem. That and the lowest rates in 40 years.
I’ve seen graphs over the past 30 years of home prices relative to employment. It would be interesting to see one relative to interest rates, since that affects the payment so much.
