If the VA can gurantee a loan why can't Uncle Sam?

geetrue · 03-19-08, 12:25 PM

What if they (USA) just gave everyone a VA no variabe prime rate loan?

What the bank agrees to loan the borrower pays, right?

Instead of bailing out banks and investment companies and make no mistake greedy people were buying homes as an investment
till the bubble broke and no one was paying the higher prices.

We should garantee the banks loan letting the government be for the people that pay on time and just want stability in their lives.

The overhead of managing such a program would be lower than the 200 billion dollar bail out Uncle Sam is involved in right now,
plus one investment company of 30 billion dollars alone with other investment banks now crying to save them too

What is a VA Home Loan Mortgage

VA Loan is a home loan mortgage that is made available to Veterans by the Veterans Administration.

VA will allow veterans to purchase a home with no down payment (100% financing)
VA does not actually fund the loan, they simply guarantee the loan for the investors.
VA will gurantee a loan up to $203,000 for eligible veterans.
VA will allow unmarried surviving spouse of veterans to obtain a VA home loan.

Tchocky · 03-19-08, 12:30 PM

Quote:

If the VA can gurantee a loan why can't Uncle Sam?

Uncle Sam backs the VA, seeing as how it funds the VA.

sonar732 · 03-19-08, 01:00 PM

Quote:

Originally Posted by Tchocky

Quote:

If the VA can gurantee a loan why can't Uncle Sam?

Uncle Sam backs the VA, seeing as how it funds the VA.

That's not what he is saying. He understands...as a vet...that Uncle Sam backs the VA and funds it. What he's asking is if Uncle Sam can do this for a veteran...why not Joe Public?

One simple word...

COST

geetrue · 03-19-08, 04:13 PM

America provides security for everyone with a big Navy, Army, Air Force, FBI, CIA, Homeland Defense ...

I think it should supply guranteed home loans at low cost, no down payment for under $200,000 and let the good times role.

Everyone with a job could qualify for a low based interest home loan on their abiity to pay it back.

More home owners, less renters, more stability in our country ...

This should be a campaign issue just like health care for everyone, which I do not agree with.

Free health care for people that smoke, over eat, watch t.v. all the time (hey I use to do that) and then want the government to patch them up for free.

Gurantee our home loans America ... you can afford it.

Wolfehunter · 03-19-08, 07:18 PM

Problem is the Banks controls the governments. They make the money policies not the other way around. Bank owners want control and make pure profit from loaning there $ with interest to all the governments and you. So every circulating $ plus added % of interest = never ending debt.

The WosMan · 03-19-08, 08:04 PM

Problem is in many ways the federal government created the whole mortgage crisis 15 years ago with the relaxation of underwriting standards and the elimination of practices such as "red-lining" an area. In many ways the fed forces banks into taking on risky clientele and engaging in expensive subsidized programs that they get little or negative return on. The banks respond in ways where they still try to make a dollar. You would be amazed at the products many financial institutions offer that they lose a lot of money on but keep them because they either have to or they don't want to look bad in the papers. When the deals fall through (which happens many times) they end up putting them in their own portfolio and taking it in the shorts. Using your banking system as a welfare system is never a good idea. It should go back to the way it was in the 70s and 80s where it was much harder to get a loan and the products offered were 30 year, 15 year, no adjustable rate, and the only special program is VA or FHA. Some people just should not be home-owners.....get over it. I don't feel like bailing out your rear-end because you were an idiot making 30,000 a year and financed an adjustable rate mortgage for a $350,000 home.

The truth is though, banks weren't the ones making bum deals, it was mortgage brokers and companies like Countrywide. Most banks and S&Ls did legit deals with some sub-prime but not too much. The actual banks that held a lot of sub-prime are being bought out or sold (National City) but many of the big banks didn't hold as much sub-prime. Countrywide probably did the most damage to the industry.

The government is never the answer to the problem, it only makes the problem worse and then creates a dependency. We just need to take the bad medicine and allow people to be foreclosed on and we need to let the financial institutions pay for their mistakes and the interest rates need to go up. By trying to delay the inevitable we are creating a much larger problem. One of the reasons the great depression occurred wasn't because Hoover did nothing (which is what we were taught) but rather because he micromanaged and meddled in it. Then Roosevelt came in with the "new deal" which only made the Depression last for 10 years rather then the 1 it should have lasted. The only thing that got us out of it was WW2.

03-19-08, 12:25 PM	#1
geetrue Cold War Boomer Join Date: Jan 2002 Location: Walla Walla Posts: 2,837 Downloads: 5 Uploads: 0	If the VA can gurantee a loan why can't Uncle Sam? What if they (USA) just gave everyone a VA no variabe prime rate loan? What the bank agrees to loan the borrower pays, right? Instead of bailing out banks and investment companies and make no mistake greedy people were buying homes as an investment till the bubble broke and no one was paying the higher prices. We should garantee the banks loan letting the government be for the people that pay on time and just want stability in their lives. The overhead of managing such a program would be lower than the 200 billion dollar bail out Uncle Sam is involved in right now, plus one investment company of 30 billion dollars alone with other investment banks now crying to save them too What is a VA Home Loan Mortgage VA Loan is a home loan mortgage that is made available to Veterans by the Veterans Administration. VA will allow veterans to purchase a home with no down payment (100% financing) VA does not actually fund the loan, they simply guarantee the loan for the investors. VA will gurantee a loan up to $203,000 for eligible veterans. VA will allow unmarried surviving spouse of veterans to obtain a VA home loan. __________________

03-19-08, 04:13 PM	#4
geetrue Cold War Boomer Join Date: Jan 2002 Location: Walla Walla Posts: 2,837 Downloads: 5 Uploads: 0	America provides security for everyone with a big Navy, Army, Air Force, FBI, CIA, Homeland Defense ... I think it should supply guranteed home loans at low cost, no down payment for under $200,000 and let the good times role. Everyone with a job could qualify for a low based interest home loan on their abiity to pay it back. More home owners, less renters, more stability in our country ... This should be a campaign issue just like health care for everyone, which I do not agree with. Free health care for people that smoke, over eat, watch t.v. all the time (hey I use to do that) and then want the government to patch them up for free. Gurantee our home loans America ... you can afford it. __________________

03-19-08, 07:18 PM	#5
Wolfehunter Crusty Capt. Join Date: Sep 2007 Posts: 2,752 Downloads: 40 Uploads: 25	Problem is the Banks controls the governments. They make the money policies not the other way around. Bank owners want control and make pure profit from loaning there $ with interest to all the governments and you. So every circulating $ plus added % of interest = never ending debt. __________________

03-19-08, 08:04 PM	#6
The WosMan Watch Officer Join Date: Jan 2005 Location: OH Posts: 332 Downloads: 88 Uploads: 0	Problem is in many ways the federal government created the whole mortgage crisis 15 years ago with the relaxation of underwriting standards and the elimination of practices such as "red-lining" an area. In many ways the fed forces banks into taking on risky clientele and engaging in expensive subsidized programs that they get little or negative return on. The banks respond in ways where they still try to make a dollar. You would be amazed at the products many financial institutions offer that they lose a lot of money on but keep them because they either have to or they don't want to look bad in the papers. When the deals fall through (which happens many times) they end up putting them in their own portfolio and taking it in the shorts. Using your banking system as a welfare system is never a good idea. It should go back to the way it was in the 70s and 80s where it was much harder to get a loan and the products offered were 30 year, 15 year, no adjustable rate, and the only special program is VA or FHA. Some people just should not be home-owners.....get over it. I don't feel like bailing out your rear-end because you were an idiot making 30,000 a year and financed an adjustable rate mortgage for a $350,000 home. The truth is though, banks weren't the ones making bum deals, it was mortgage brokers and companies like Countrywide. Most banks and S&Ls did legit deals with some sub-prime but not too much. The actual banks that held a lot of sub-prime are being bought out or sold (National City) but many of the big banks didn't hold as much sub-prime. Countrywide probably did the most damage to the industry. The government is never the answer to the problem, it only makes the problem worse and then creates a dependency. We just need to take the bad medicine and allow people to be foreclosed on and we need to let the financial institutions pay for their mistakes and the interest rates need to go up. By trying to delay the inevitable we are creating a much larger problem. One of the reasons the great depression occurred wasn't because Hoover did nothing (which is what we were taught) but rather because he micromanaged and meddled in it. Then Roosevelt came in with the "new deal" which only made the Depression last for 10 years rather then the 1 it should have lasted. The only thing that got us out of it was WW2.