Here is mine
Help those who will actually help our economy.
Have the fed gov. offer the following loan options
30 year fixed at 3%
20 year fixed at 2%
10 year fixed at 1%
Who would/should qualify?
Those with 30% equity better
700 fica or better
ability to repay the loan (full doc loans only)
How will it help?
1.Reduce the interest deduction on earned income (less interest paid, less deduction, more income taxes paid into the gov.) Some want to get rid of this deduction, this would reduce it by alot.
2.Lower payments on homes for those who would/could spend it (people who are not strugling and can make their payments at current interest rates thus spuring our consumer driven economy)
3.Generate goodwill by helping those who are actually driving our economy, not just the banks and those who are already over their heads (face it the loan mods are not helping the majority of the people who want them anyway)
4. Stabilize housing (in the long run, people will once again look at homes as long term investments, something to pay off and live in debt free) discourge flipers which contributed to the buble (did not cause, but helped drive the craze)
5. others as well, just cant think of them all right now...
Limits of program
1. Primary home only
2. no cash out no matter how much equity you have
3. have not filed bankruptcy in last 7 years
4. have not had a foreclousure in last 7 years or a NOD
Well thats my idea, Ive given this some thought what is yours?