Reading recently about the part of the stimulus plan that gives an $8000 tax rebate incentive to first time home buyers has got me to wondering if this is stimulating to the housing market and in turn the national economy, or are we continuing the same mistakes that led us to this point? In the midst of these thoughts, I had a conversation with a colleague who is looking to buy his first home. He commented that “no way am I going to let that $8000 go by.” This was stated right after he said that he was struggling to come up with the 5% down he would need to get a conventional loan since the house he was interested in wouldn’t accept the FHA loan he had already qualified for. So is my friend getting himself in over his head? If he hasn’t been able to save up for the down-payment and closing costs should he be purchasing a home? Is he the foreclosure of the future? And, perhaps most importantly, whose responsibility is it? Should he be “allowed” to fail or is that damaging our economy too much?