Federal Housing Administration

It was still kind of a little bit of a new idea.

And now FHA, Fannie, they're all looking at it like, hey, this is really pulled apart apartments.

Let's take different looks at it.

And as a result, I was talking to guys just this last week that said, hey, we will look at built to rent new stuff with a much keener eye.

Let's say the inspection guy completely missed it that we hired.

Instead of it's fine, the appraiser picked it up and they have an FHA or VA loan.

Still have to be repaired.

It's a financial contingency.

And so you tear down these regulations, you increase the supply, you decrease the cost.

And now you have FHA, which is at HUD.

And to your point, 1.5 million people in America last year were able to afford to buy a home.

80% of those were first-time homebuyers.

And the mainstream media doesn't talk about it because that's good news, right? And so thank you all for bringing that up.

But we'll continue to shout from FHA as the number one first-time homebuyer program in our country.

We'll continue to make it strong day by day.

Well, that's huge.

Right.

Well, and especially like, especially if we're doing an FHA loan and FHA appraisal stick with the property, you know, so then if they decide to cancel and they want to relist the home, then any FHA buyer that comes along is going to get that appraisal.

you're going to

have to pray for a conventional or cash buyer.

We have automated underwriting approval.

They find a house, you know, under contract, everything's perfect.

And then we get noticed that credit score requirements are, are changing and that they now need a 660 credit score because that is the minimum credit score requirement for FHA.

You remember that when that happened during

We're more socialist than any European country when it comes to the government backing of mortgages.

That's through FHA insurance and through Fannie and Freddie guaranteeing and securitizing these mortgages.

You basically almost have a government-run socialist mortgage market.

Now, what does that do? It lets people afford a much higher mortgage amount than they will be able to under a free market, which therefore drives up house prices significantly.

So unless I have cash to cover the cost, I'm not thinking about budging, right? And it's just, this is a stupid way to do housing policy where 20 years ago, this wasn't the problem.

It was still kind of rational.

Yeah, we had some FHA loans.

By and large, people were still looking at housing not as an investment opportunity to flip, but something to have long term.

Land was cheap.

The federal government was basically subsidizing the middle class into existence with the GI Bill, FHA loans, and an interstate highway system that turns the suburbs into a way of life.

At its peak, the U.S. was adding around 4 million babies a year, roughly 11,000 babies born every single day.

The average family had nearly four kids.

Now, that all has to be repaid at some point, but this $25,000 grant, everybody's selling it as this big, great new product that the government's giving us.

But at the same point, I'm like, first of all, there's not a lot of houses on the market to utilize it, right? Homebuyers or home sellers are actually kind of scared of it because of the inspections and all the things that come along with it because it's an FHA-backed loan, right? So there's a whole bunch of things that go with it.

Now, everybody's advertising it as this great new thing, but I'm like, it all has to be paid back at some point, guys.

It all has to be paid back.

That's exactly right.

And of course, can they obtain a loan? If they're going FHA, it may not be warrantable for FHA loans.

So some of these buyers we're finding, some of your best buyers might be your cash buyers right now.

Yeah, I think so, especially when it comes to condos.