As the Gateway Pundit recently reported, the state of California is going down the road that led to the 2008 financial crisis, by letting people buy more house than they can afford.

Now a former advisor to Joe Biden is suggesting a nationwide policy of letting people buy a house with just $1,000 down.

This is their fix to the housing crisis. They want to repeat bad history.

From Newsmax, via Yahoo Finance:

Former Biden economic adviser Lael Brainard is proposing a new federal mortgage program that would let qualifying first-time buyers purchase a home with just $1,000 down, financed through higher mortgage insurance fees, Bloomberg reports.

The Kitchen Table Project estimates the proposal could bring 2.2 million additional renter households into the homebuying market.

The proposed Federal Housing Administration program would require “strong underwriting criteria,” including a credit score of at least 660 and monthly debt payments below 50% of income.

To cover the cost, the group proposes increasing the FHA’s upfront mortgage insurance premium by about 30 basis points, or 0.3 percentage points.

“Not only can it help move 2.2 million renters into homeownership, it can also be done without any cost to the US government,” said Brainard, who led the National Economic Council under President Joe Biden.

Down payment assistance typically involves “grants, and grants are a direct cost to the government, and we know that we already have additional fiscal priorities,” she said.

“We really looked for proposals that could be done with a minimal amount of taxpayer funding.”

It’s such a dumb idea.

This will not end well.

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