Quote:
Originally Posted by rubecube
Sure that's one example, but we both know this has the potential to be abused pretty badly. Parents gift/lend their kids the $20k, and then pocket the amount received from the government. I'm pretty sure I could secure a $20k personal loan from family and friends within a few days if I really worked at it. Five years roll around and the kid has saved nothing and now starts getting hit with monthly interest charges on top of their living expenses and it's ultimately the taxpayers who foot the bill if he defaults.
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Ok but this kid has already qualified for the loan even without the free government money. He can take his 20k and put 5% down and pay all of the interest from day one and somehow this is less scary? The government loan isn't adding any more risk. Why aren't you freaked out about people who currently put 20k of their parents money down on their first condo? This isn't creating new qualified buyers that are currently unqualified.