Cash for Clunkers FHA Loans

Cash for Clunkers was so successful in stimulating auto sales it had to be shut down for fear it would exhaust it’s budget this weekend. A vote goes to the senate this week for 2 billion dollars of further funding.

Such success of a relatively inexpensive program compared to the $787 billion dollar price tag of the stimulus package. It makes me wonder. Could this success be replicated in housing. Some say the auto industry is first to jump out of a recession as it’s a smaller commitment then a home. Then comes housing.

FHA loans are controlled by the government and could be an avenue for stimulus success in real estate.

If they open up this 8 thousand dollar tax credit to anybody instead of limiting it to first time home buyers using FHA loans to buy homes maybe that would get things jumping. Maybe if you could trade in your up side down house with a Fannie Mae loan and get into a new home with an fha loan? Wouldn’t that be something? Maybe if you could trade in a house that needs some work? Obama and his colleagues should get creative and try to replicate the success of CARS as soon as possible.

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