Collective genius in FHA. Stop the bleeding and get back to reality. If it was up to me you wouldn't get a dime of help. Where is the accountability? I'm in favor of the dealth penalty in this situation.
O.K. I'll but that but only in terms of inflation adjustment, even though I don't count inflation adjustment.
But in this case it's applicable.
Say House sells for 20K in 1952 and for its time, that house is considered 10K more than the average priced house.
Fast forward to 2012 the house sells for $150K - $160K or the average price for a house in the South. While the house certainly did appreciate from 1952 from the value of those times. It should be worth 300K if you go by the Case–Shiller index.