Sunday's LA Times includes "Uncle Sam's speciality loan program worth a look". The piece mentions that "Two little-known federal lending programs may hold the answer for cash-strapped home buyers. For financing which you don't have to put up cash of your own, even for closing costs, consider the U.S. Department of Agriculuture's Rural Development Program. Or if you're buying a fixer upper, the Federal Housing Administration has a loan form you. ... And don't let the term 'rural' fool you."
Many small cities with populations 10,000-25,000 are in metro areas and qualify. The piece points readers to this site to test their eligibility.
Fannie and Freddie may live or die. But there will always be ways for politicians to spread the moral hazard. And when chickens come home to roost, they will connect all the wrong dots and blame everyone but themselves.