Yep. As we know throwing money out the door will always help...

Yep. As we know throwing money out the door will always help affordability.

Buyer 1, with 350k in the bank might be eying off a 350k house. Some hard nosed negotiation in a dead market could get it down to 320k or lower.

But now the government (AOFM) is willing to back an idiot lender who'll give some cretin (Buyer 2) 95% of up to 750k, to then go hogwild and compete against Buyer 1 in the market.

Fantastic system.