What are the disadvantages of subprime home loans?

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I’m getting ready to buy my house. I know to do a 30-yr fixed rate. I’m just wondering what is the buzz about subprime home loans? It seems to really be hurting people and mortgage companies. What are the advantages and disadvantages? Thanks.

Why did Bush ask/order fannie mae to make 440 BILLION in home loans to minorities in 2002?

Here is the offical press release from the bush white house.
http://georgewbush-whitehouse.archives.gov/news/releases/2002/06/20020617.html

Bush appoints the management of freddie mac and fannie mae and “asked” his appointees to make 440 BILLION in loans to poor minorities. He also asked for 2.4 billion in tax credits (corporate welfare) for homebuilders who build low income housing. And he asked for 200 million per year to pay the mortgage closing costs. (If the president appoints you to your job and asks you to do something, that is pretty much an order if you want to keep your job)

This is what Bush’s press release states:
“Today, President Bush announced a new goal to help increase the number of minority homeowners by at least 5.5 million before the end of the decade. The President’s aggressive housing agenda will help dismantle the barriers to homeownership by providing down payment assistance, increasing the supply of affordable homes, increasing support for self-help homeownership programs, and simplifying the home buying process & increasing education.

The President is issuing “America’s Homeownership Challenge” to the real estate and mortgage finance industries to join in his effort to increase the number of minority homeowners by 5.5 million families by the end of the decade. Many organizations have already responded to the President’s challenge by committing to:
“Substantially increase by at least $ 440 billion, the financial commitment made by the government sponsored enterprises involved in the secondary mortgage market, specifically targeted toward the minority market”
The President wants to dramatically increase the supply of homes available to low and moderate income families. The President has proposed the Single-Family Affordable Housing Tax Credit, which will provide approximately $ 2.4 billion to encourage the production of 200,000 affordable homes for sale to low and moderate income families.”

Did you know that bush’s top donors were subprime mortgage lenders, real estate developers, and his finance chairman is one of the biggest homebuilders in america…his name is dwight scharr and he lives in a 70 million mansion in palm beach.
Did you know that Bush’s cousin, Herbert Walker, was vice president of the Goldman Sachs department that placed TRILLIONS in bets that these people would not repay their loans.

Coincidence? No. Crime of the centruy. Yes.

countrywide home loans

soon to be something else…

12 Comments
  1. Reply
    loanmasterone
    January 26, 2011 at 4:55 am

    There are advantages and disadvantages to everything in life.

    I don’t understand your situation financially, therefore I can not answer your question about subprime mortgage.

    Sub-prime mortgage was and is an option available or was selected by those that wanted to purchase a house and the program fit their financial situation at the time.

    Depending on your financial condition, credit report and other factors will determine if you get a sub-prime loan, an adjustable rate mortgage a 30 year fixed rate and FHA or a “A” loan.

    You should not zero in on a certain mortgage program because everyone tell you this is the way to go. Don’t jump into the fire because everyone says it is the way to go and we fell all warm and rosy. This same fire might burn you.

    Your financial situation should dictate the type mortgage you get. Everyone’s financial situation is different.

    You should contact a mortgage broker complete a mortgage application and allow this mortgage broker to run a credit check for you.

    This credit report, debts on your credit report as well as your income will dictate the type of mortgage you are qualified for not that you want a 30 year mortgage or that all your friends have a 30 year mortgage or suggest that you get a 30 year mortgage.

    What is best for you right now and in the future should determine the type of mortgage you want and should get.

    Once your mortgage broker has mortgage programs available to you then you should sit down with this mortgage broker and go over each option available to you. If you don’t understand a certain mortgage then don’t leave the table until you completely understand what is available to you.

    Now once all your options have been explained to you, then and only then are you able to make an intelligent decision as to which is best for you.

    I hope this has been of some use to you, good luck.

    “FIGHT ON”

  2. Reply
    don1862
    January 26, 2011 at 5:24 am

    The big advantage is that people could get a loan even if they did not qualify. The disadvantages are a very high interest rate, and now they are hard to get since the crisis started.

  3. Reply
    Free2Be
    January 26, 2011 at 6:08 am

    That was Clinton. Do your homework.

  4. Reply
    Mike
    January 26, 2011 at 6:29 am

    To be fair, fannie mae has been used by both political parties and corporate banking as a place to hide bad loans.

  5. Reply
    Da Debil
    January 26, 2011 at 7:04 am

    empty rhetoric

  6. Reply
    Baroccoli
    January 26, 2011 at 7:50 am

    I find it funny, that the day before the midterms of Obama’s 1st term, and all you libbies can do is talk about Bush. Newsflash!!!!! Bush isn’t president.

  7. Reply
    jack99skellington
    January 26, 2011 at 8:11 am

    Because he directly profitted from it. Yes, he was corrupt. He needs to go to prison.

  8. Reply
    Wounded Duck
    January 26, 2011 at 8:20 am

    Oops, reality sucks for the GOP!

  9. Reply
    Yep
    January 26, 2011 at 8:34 am

    Meanwhile, here in REALITY, W and company screamed for reform at the top of their lungs, only to be utterly rejected by the Dems. Here, buy or steal the courage to listen to them in their own words:

  10. Reply
    Jaded
    January 26, 2011 at 9:20 am

    I appreciate and applaud your efforts this morning but I believe you are fighting a losing battle against uninformed people. They, conservatives, will still blame Obama no matter what proof you supply. It goes against the current propoganda being fed so they will ‘throw it up’. It really doesn’t matter anyway some one once said ‘if voting were effective they would have outlawed it.”

  11. Reply
    jcindustriesron@sbcglobal.net
    January 26, 2011 at 9:28 am

    He done that for financial gain first for his friends and himself the second reason was that most of the time minorities are discriminated against the first reason was really what he wanted

  12. Reply
    TheTruthAbout
    January 26, 2011 at 10:25 am

    Photo used in Mozilo Defense Attorneys Want SEC Suit Dismissed article

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