RUSH: This is Charlene in Paulden, Arizona. Great to have you on the EIB Network. Hello.
CALLER: Hey, Mr. Limbaugh. I have Rush Babies, and thank you so much.
RUSH: Thank you!
CALLER: Hey but, you know what, I’m real fired up. My son has an opportunity to buy a 1500-square-foot house with a garage on two lots for 20,000 bucks. It’s beautiful. It’s a nice house. The lady passed away and her niece wants to sell it and my son offered her $20,000. She said, ‘Okay.’ The bank told him he had to have 20% down, which was $4,000. So all he has to borrow is $16,000. You know they turned him down? And he’s an Army man. Six years in the military, and they turned him down, for 16,000 bucks.
CALLER: Can you believe it? He’s got a credit score of 800.
CALLER: How can they do that?
RUSH: Is this in Arizona?
CALLER: Yes, sir. Oh, I can… Boy, I got things I could run down to you.
RUSH: Did he have the 4,000?
CALLER: Yes, he has the 4,000! All he needed!
RUSH: So he had the 20 grand to put down on it. Other people who don’t have any down payment were given full-fledged, 100% loans.
CALLER: All he needs is $16,000. The whole place is $20,000. All he needs to borrow is $16,000. He’s got the $4,000.
RUSH: Well, hell we could raise that by three o’clock.
CALLER: Well, boy, wouldn’t that be a blessing. You know, he’s been a soldier for six years, and the bank turning him down?
RUSH: Well, why did they say that? Look, we need all the data. He’s got a credit store of 800. Why did they turn him down? What did they say?
CALLER: Tell me. He can’t believe it. When he called me and said, ‘Mama, I went and did all my paperwork. When I told the lady about this place and it’s three bedroom and it’s two full baths. It’s got a garage. It’s on two lots.’
RUSH: Let me tell you something. The more I think about this, I don’t think it’s anything to do with your son.
CALLER: The banks won’t loan. They will not loan!
RUSH: That’s what I mean. I think this is a result of the stagnant economy that we are in.
CALLER: Yes, sir.
RUSH: I don’t think it has anything to do with your son not being creditworthy.
CALLER: No. No. He just wonders if they don’t believe him. He said that when he asked for the loan, when he told her about the place, her jaw dropped.
RUSH: Has your son gone to the local or the nearest ACORN office to see if they might be able to help?
CALLER: No, sir. We figure that the interest rate on that would be outrageous, like 14, 16%. We don’t want roll that way.
RUSH: You’re talking loan shark rates there. Okay.
CALLER: Yeah. That’s what they do.
RUSH: Let’s see what else. Have you thought about going to FHA?
RUSH: Federal Housing Authority. I mean they still make FHA loans even to people who can’t put the 20% down. I can’t believe it. A 1500-square-foot house for $20,000? Where is this house?
CALLER: (chuckles) Well, we have one gas station and one post office. It’s just a small town outside of Prescott.
RUSH: You know what? Outside of Prescott?
CALLER: Yes, sir.
RUSH: Tell your son to screw buying the house, buy the gas station! That’s what he needs.