Scam Spam Flyer from FHA "Downpayment Assistance Firm"

We received this lovely mailer as spam to our inbox today. It quite nicely demonstrates and proves that downpayment assistance scamming -- which basically turns FHA into a flat-out subprime program, as bad as any of the private subprime lenders which are now defunct -- is still alive and kicking. Here is some text from the ad (with our commentary):

$0 DOWN - Get Your Clients Funded

Home Downpayment Gift Foundation, [See, "gift" sounds so benign, it can't be bad!] a leader in the industry [a leader at shady mortgage scams?], offers an unmatched downpayment assistance program. With our program your buyers can get the necessary funds to purchase that new home! [See, we don't care if they can't actually afford the home, because after we're done it's just the government's problem.]

An FHA loan with downpayment assistance is the hottest loan in today's market [yeah, because its just about the ONLY way to get the equivalent of a subprime loan these days. At least, until they finally make it illegal.] If you are familiar with this combined program, then you know what we are talking about! [Wink wink!] If not, then you are about to find out [how profitable fraud is]. Either way, read on and contact us so we can help [defraud the government and taxpayers].

No money down!

No closing costs!

[No shame!]

Sellers can also provide up to 6% seller's commission! [and help continue to inflate home prices! yay!]

We also love the picture of what is a veritable mansion, as if you are going to get that on an FHA loan. Of course, with the new higher limits and this kind of sleazy program, you just might be able to.

Click here for the image of the ad (it was of course in image form to get past spam filters).