FHA loans — you know, those loans that, when push comes to shove, we as citizens get to insure — have risen to almost a quarter of all home loans from 3% just a few years ago. Why? Because apparently they don’t care who they loan to:
FHA also has tightened lending standards, requiring a 10% down payment for those with credit scores below 500.
When 10% down payment for a credit score below 500 is an indication of tightened standards, you just have to laugh. Or cry. 
Someone with a score in that range has shown an obvious lack of financial acumen, and has no business with a credit card with a $1,000 limit much less a home loan of potential $100s of thousands. Until one has shown at least the modicum of restraint — and a sub-500 credit score is just about the exact opposite — the dream of home ownership should remain precisely that: a dream.
