U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 04-29-2018, 12:42 AM
 
Location: TX
3,899 posts, read 4,512,224 times
Reputation: 4273

Advertisements

From headlines of near future: Housing bubble bursts.
Reply With Quote Quick reply to this message

 
Old 04-29-2018, 05:09 AM
 
11,315 posts, read 5,839,816 times
Reputation: 20984
Quote:
Originally Posted by TimAZ View Post
Sounds vaguely familiar:

http://www.freddiemac.com/singlefami...df/homeone.pdf

Freddie Mac is offering conventional mortgages with 3% down, no income restrictions -- what could possibly go wrong? Gotta keep pushin' that rope!
In 2018, you’re not getting a 3% down mortgage with a trashed credit rating and no stable work history. The risk is priced into the monthly payment. PMI and a higher interest rate. This is totally different from the crazed lending criteria of 2005.
Reply With Quote Quick reply to this message
 
Old 04-29-2018, 08:32 AM
 
Location: Formerly Pleasanton Ca, now in Marietta Ga
4,111 posts, read 3,402,459 times
Reputation: 5633
Quote:
Originally Posted by GolfingCat View Post
What's wrong with giving low income folks a shot at home ownership?
This naievete is dangerous. Too many like you don't know what happened. That's what caused the whole crash to start with. Then those low income folks' loans got sold on wall street and were sold as a package of triple a rated investments. Should the whole country crash again to give some low income folks a chance who can't afford it to start with?
Reply With Quote Quick reply to this message
 
Old 04-29-2018, 08:39 AM
 
608 posts, read 281,196 times
Reputation: 1932
Quote:
Originally Posted by GeoffD View Post
In 2018, you’re not getting a 3% down mortgage with a trashed credit rating and no stable work history. The risk is priced into the monthly payment. PMI and a higher interest rate. This is totally different from the crazed lending criteria of 2005.
The risk is priced-in, sure it is. Nothing "crazed" going on here with this Fannie "innovation":

In its latest 'offering' letter for HomeReady Mortgages, Fannie Mae offers what it calls 'innovative underwriting flexibility'...
  • Offers an innovative new feature that supports extended family households: will consider income from a non-borrower household member as a compensating factor in DU to allow for a debt-to-income (DTI) ratio >45% to 50%.
  • Allows non-occupant borrowers, such as a parent.
  • Permits rental income from an accessory dwelling unit (such as a basement apartment).
  • Allows broader income (updated guidelines provide documentation flexibility).
...
"It could be a credit problem, it could be an income problem, it could be an employment history problem, it could be a debt-ratio problem. There are a number of things that can affect a person's situation," said Chris O'Connell, a licensed mortgage loan officer with Nations Reliable Lending.
Mortgage giant Fannie Mae recognizes these hardships, and in response will soon offer a new kind of mortgage with new rules designed to add flexibility for borrowers.
"They've recognized that households have changed and our guidelines need to change with it," said O'Connell.
HomeReady will consider incomes from others planning to live in the house without being a borrower on the loan.
This means, if you live with parents, siblings, working children or maybe a roommate, as long as they make 30 percent of the household income, Fannie will include their money to help you qualify for a loan.
These are being called "non-borrowers" by Fannie.
Reply With Quote Quick reply to this message
 
Old 04-29-2018, 09:01 AM
 
16,490 posts, read 17,513,441 times
Reputation: 23546
Quote:
Originally Posted by GolfingCat View Post
What's wrong with giving low income folks a shot at home ownership?
Absolutely nothing. But when you have to change the system to make it happen......
Reply With Quote Quick reply to this message
 
Old 04-29-2018, 09:52 AM
 
Location: Phoenix, AZ
1,235 posts, read 478,697 times
Reputation: 2812
The only thing we learn from history is that we don't learn anything from history.


Anybody remember what a Savings and Loan Association was?


That industry went into the toilet in the 1980s for the same reasons as the 2008 mortgage and real estate debacle.


There's an old saying that you can't avoid death and taxes. Well, there is a third thing you can't avoid: It's inevitable that the human race will engage in the same stupidity over and over again.
Reply With Quote Quick reply to this message
 
Old 04-29-2018, 10:25 AM
 
Location: The Triad (NC)
26,847 posts, read 57,851,863 times
Reputation: 29251
Quote:
Originally Posted by adjusterjack View Post
That industry went into the toilet in the 1980s
for the same reasons as the 2008 mortgage and real estate debacle.
Yep. Republican foxes in charge of the chicken coop.

Quote:
There's an old saying that you can't avoid death and taxes.

Well, there is a third thing you can't avoid:
It's inevitable that the human race will engage in the same stupidity over and over again.
So long as the proles have an equal vote... it seems we'll be subject to who can influence them.

How Half Of America Lost Its F**king Mind
Reply With Quote Quick reply to this message
 
Old 04-29-2018, 10:37 AM
 
Location: IHB Florida
58 posts, read 59,789 times
Reputation: 38
Quote:
Originally Posted by luv4horses View Post
My understanding is that the 2008 mess was partly caused by lenders lying about the clients finances and when mortgages were created they were immediately divided up into tiny fragments, mixed with fragments from other mortgages, and sold as bundles of pieces. Then the bundles were divided up, combined with other pieces of bundles, and sold again. Nobody knew what they owned, and half of it was garbage loans. Obama era safeguards stood to stop that from happening again, and still will unless gutted by the new administration.
They are trying. I believe part of it was already repealed.

Bill to Repeal the Dodd-Frank Act | Dodd-Frank and the Law
Reply With Quote Quick reply to this message
 
Old 04-29-2018, 10:45 AM
 
Location: IHB Florida
58 posts, read 59,789 times
Reputation: 38
Quote:
Originally Posted by Peasy973 View Post
Housing prices are higher today than previous highs in the mid 2000s but not when factoring in inflation and higher building costs. It may take a few more years of growth for housing prices to hit the previous highs with those external factors.
Maybe for California? I just sold my house in an area that pre-crash were selling for $365. I was not able to sell for that. It did, however, increase in value of about 80k in two years.

Edited to add:

I put about 10k of improvements into it and Irma "bought" me a roof (not quite, my HO premiums are/were extremely high). I did most of the work myself which saved a ton on labor.

Last edited by Indiana Beekeeper; 04-29-2018 at 10:54 AM..
Reply With Quote Quick reply to this message
 
Old 04-29-2018, 02:41 PM
 
Location: Paranoid State
12,682 posts, read 9,425,981 times
Reputation: 14933
Quote:
Originally Posted by GolfingCat View Post
What's wrong with giving low income folks a shot at home ownership?
What's wrong with low income folks adding more value to society so they earn more money?
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top