The U.S. government tried to help but, as usual, it may have “bitten off more than it can chew”. The multi billion dollar real estate bailout aimed at alleviating bad mortgage indebtedness has some good points and also a dark side. As the Fannie Mae and the Freddie Mac institutions seem to be failing as well as thousands of other smaller lenders, there seems to be help available from the Treasury. This helpful aid comes in the form of a real estate bailout program that may well pump new and fresher capital into the U.S. mortgage market and allow more loans for home buyers to be made and at far more favorable interest rates. Currently interest is around five to six percent on a thirty year fixed rate mortgage loan and that’s about as low as it will get for a while.
Qualifying for a home loan may be a problem for those whose credit has already been damaged by job loss or other financial troubles. Many prospective home buyers want more house than they can afford and they need to look at smaller and more affordable housing in order to qualify. A real estate bailout may be too little, too late for many who want the American dream of being home owners.
Here is a video that can make things clearer.