Blogs » A Constitutionalist & Believer in Natural Law » Will we be able to get a home mortgage?


Back in February, Speaker Nancy Pelosi and Senate Majority Leader Harry Reid just could not help themselves when it came to adding legislature to the President’s request for an economic stimulus rebate.   The added what they claimed was a much needed fix for Fannie Mae and Freddie Mac.  The bill was suppose to help lower mortgage rates by increasing the guarantee limit of the mortgages and increase sales of houses in overbuilt markets.


Everyone that has read any news at all over the last few months are aware of the housing crisis and excess inventory of houses, especially on the east and west coast.


Maybe this blogger is out of touch with what the average hard working Texan family income is and the price of housing.  I contend that few first time home buyers in Texas can qualify or afford to purchase a home costing $150,000.  Sure sounds like a lot of money to me. Fannie Mae and Freddie Mac loans were already guaranteed to just short of half-million dollars; $417,000.  Now, remember this is at a time when many loans were going soar.  It must be the going green organic food they are eating to come up with the logic that raising the guarantee limit was a great inspiration.  They raised it to just short of three quarters of a million dollars; close to $730,000.  Most Texans would call these guaranteeing loans to the wealthy.


So Freddie Mac and Fannie Mae started buying jumbo loans. Of coarse this caused less money to be available for the smaller borrowers, and increased the down payment on small loans up to 20% of the loan. And the loan rates have rose by 0.12%.  And the excess inventory of homes have reminded about the same, because built has not stopped completely. Use to individuals with credit scores of 620 and higher got some of the best rates from Fannie Mae and Freddie Mac. Starting October 1, 2008 the best rate will require a credit score of at least 720.


Now, Freddie Mac and Fannie Mae are on the edge of a financial collapse.  The cost of this bail out to Texas taxpayers cannot yet be determined. 

And the question is: "Will we be able to get a home mortgage?"