Welcome back to 2006!

[Marc C.]

Time Machine: Just had an offer on a $150,000 starter home here in the Land of Enchantment (New Mexico...it's the 47th state, not a country). The buyer had $500 to put down, and no more. No problem! The New Mexico Financing Authority is somehow working with buyers so they can buy houses on FHA loans with $500 down. My buyer had a pre-approval letter, but didn't have enough cash to pay for closing costs, so their offer was that I pay for everything, even the inspection and appraisal. (I declined.)

I'm sorry, but if you have only demonstrated the financial wherewithal to save $500, are you REALLY a good, long-term candidate for purchasing a house? Wouldn't a car dealer want more than that to buy a $30,000 car (maybe not, if it's 2006 all over again). 

Doesn't this seem like 2006 all over again? Have we learned nothing?