And to Mark M. the President does not appoint the CEO of Fannie Mae or Freddy Mac. although they are exempt of the requirements of the Securities and Exchange act of 1933, they are regulated through the Office of Federal Housing Enterprise Oversight of which President Bush appointed James Lockhart to head that office, in April of 2006 stop filling peoples heads with your twisted lies.

Now they want more stimulus packages, I thought they criticized the Republicans for the same thing?. Their own ignorance and lack of boundaries will be their own demise. They cannot survive without us balancing them, I am looking forward to a great fall!.

President Bush did do a great job protecting our country Bon Bon, you were right. I saw a clip of him waving, and I got tears in my eyes. I waved back at the t.v. and said goodbye, we will miss you. Our country will miss the last Godly man they will ever see in office. Boy does his face look like an angel compared to the devil they are gonna put in there.

Queentut I look forward to your questions, please be diligent, don't give up the good fight. It is you and your tenacity and service to our country that is the glue that holds us all together.

If you withdraw the money, instead of take a loan from your 401K, you will be hit with a 10% withdrawal penalty and have to pay taxes on the withdrawn amount (if it was a pre-tax contribution). The exception to an early withdrawal penalty for FTHB applies to IRAs, not 401Ks. So there's no way to get around that- much better idea to take a loan against your 401K, assuming you'll be able to pay that back on top of your new mortgage payments.

One thing to keep in mind is if you're ready to buy this house. If you're needing to borrow funds from your retirement, maybe its not a great time for you. Think about why we're in this mess- people got excited about the potential to make money in real estate or thought they NEEDED to get a home, they took out mortgages they couldn't afford, and foreclosed. Government incentives encourage people to buy homes when they probably shouldn't be, because there's a feeling that home ownership promotoes stronger communities and more responsible citizens. Its proven just the opposite. If you are ready to buy a home because you would like to live there for many many years, and are ready for paying homeowners insurance, property tax, mortgage interest, trash and HOA fees, repairs and maintenance, etc., then by all means buy. But as an investment- not such a hot idea. Homes historically return between 1-4% annually, while stocks historically return 8-10%. And stocks are also priced very attractively right now. I'd think long and hard about why you're looking to buy, how long you're planning on living there, if you can handle the extra costs in addition to the mortgage payment and 401K loan payment, etc. If you're doing this solely for investment purposes, you're probably better off just leaving that money where it is.

1. – There is no longer any subprime lending
2. – Jumbo loan rates have been rising disproportionate to the rest of the market
3. – The ALT-A market has all but vanished
4. – FHA Loans have become increasingly attractive.
5. – Fannie Mae loans have for the most part remained unaffected.

While I certainly cannot predict what the market will be like a year from now (if I could I wouldn't be writing loans and training loan officers for a living) I don't see subprime on the radar for quite some time. Everything else will come around and normalize.

Here's a point that everyone seems to be missing. For the most part this is a market problem – Given time the market will correct the problem. Not the Senate.

Is the mortgage more than 2X the requesters annual salary?
If NO, they Continue.

If Yes, Deny applicant.

If Applicant cant afford loan then it will default.