So, just received this from a local "Mortgage Advisor" in my email box this morning:

In case you're interested...

One of my lenders released a very liberal loan that allows a

no down USDA rural loan with a 580+ credit score...

Yes...580!

It used to be 640+

This is BIG news!

Here is a rundown of some of the requirements...

580+ mid credit score required for all borrowers on loan

No Bankruptcies, foreclosures or short sales in the previous 36 months

Income limits apply depending on household size

Me again: Good to know that with bad credit and no down payment people can still get that loan to make the biggest purchase of their lives. And 37 months after a BK or foreclosure they can do this all over again. Looks to me like another last ditch effort to bring in all the suckers at/near market peak so we can watch them lose it all... AGAIN!

JB, I could not agree more. Just like in 2006, the lenders are going all out to generate fees. Lowering standards, making it easier to get loans. Zero down, no problem. Bad credit, no problem.

Soon it will be no documentation, no social security numbers needed,125 percent of value.

These loan originators and bankers are way more clever than the government. The government can only respond when they know the game. By then the damage is done. Last time they packaged and loans and sold them on bulk to big investors. Remember dirivitaves?

Once the last crash cycles through, the hedge funds bought up foreclosed houses. Then they packaged the income stream from the rent and sold that just like they did the mortgages.

It's the income stream that creates the value that they sell. The houses really don't matter. They quickly cash out the income stream before it goes bad.

Think of when David Bowie packaged up the rights to his records and sold them for 50 million? By doing this, he pocketed 50 million now. If his songs fell out of favor later, the risk of losing money was on the buyer.

It's the same thing. Shift the risk to someone else and pocket the site quick money now.

It's a bait and switch.

All they want is to wet your mouth and then tell you "you don't qualify for this particular loan, but we have other excellent plans"...

USDA - says it all

good luck with one of the most disorganized bureaucracies in the USA

USDA and our congresswomen set up a media based seminar to award me a measly $25,000 grant - the grant took a year for just $25,000 . They forgot that the place chosen was in the district of a different congresswoman and we had to change all the plans for the show and tell - all for $25,000 grant

Finally at the confab the Secretary of USDA got a call and had to announce there was a holdup for a couple of weeks because they forgot to properly notify congress - for $25,000

took another 3 months to get the grant

I am done with GOVT massive incompetence

The manual for grant application is 2 of the 4" binders

one of my children got a USDA loan earlier this year. It is a wonderful product for him ... first time home buyer in a rural area. Several lenders tried to push them into loans with PMI ... mama here told them absolutely not.

Also my local USdA office is wonderful. I also received some significant grants the past few years and they were easy as can be to work with and they are, for me, one of the greatest resources I have found to help me.