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Old 04-28-2018, 02:24 PM
 
608 posts, read 281,926 times
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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!
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Old 04-28-2018, 02:59 PM
 
Location: 5,400 feet
2,203 posts, read 2,273,568 times
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For a long time, FHA loans have required a minimum down payment of 3.5%.
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Old 04-28-2018, 03:33 PM
 
3,581 posts, read 2,022,236 times
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The 2008 debacle was also due variable-rate terms, and loan values often equal to the full price (zero down) or even above full price. The #1 trigger of the wave of foreclosures was massively-increased payments when the initial rates went away.

Housing prices are mostly above the last peak...but is that true with inflation figured in? What about with development cost figured in? Land prices, construction costs, etc., have risen quite a bit in many places vs. a decade ago.
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Old 04-28-2018, 03:51 PM
 
Location: NC
6,081 posts, read 7,035,284 times
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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.
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Old 04-28-2018, 04:02 PM
 
Location: Future Expat of California
588 posts, read 260,730 times
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Quote:
Originally Posted by mhays25 View Post
The 2008 debacle was also due variable-rate terms, and loan values often equal to the full price (zero down) or even above full price. The #1 trigger of the wave of foreclosures was massively-increased payments when the initial rates went away.

Housing prices are mostly above the last peak...but is that true with inflation figured in? What about with development cost figured in? Land prices, construction costs, etc., have risen quite a bit in many places vs. a decade ago.
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.
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Old 04-28-2018, 04:05 PM
 
Location: The Triad (NC)
26,867 posts, read 57,900,981 times
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Quote:
Originally Posted by TimAZ View Post

Freddie Mac is offering conventional mortgages with 3% down, no income restrictions
-- what could possibly go wrong?
Who's holding the paper?
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Old 04-28-2018, 06:22 PM
 
Location: Paranoid State
12,685 posts, read 9,438,208 times
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Freddie Mac does not issue mortgages to residential home buyers.

Freddie Mac purchases already issued mortgages from mortgage originators, securitizes them into Residential Mortgage Backed Securities (RMBSs) and sells those to institutional investors.
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Old 04-28-2018, 10:37 PM
 
121 posts, read 37,732 times
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What's wrong with giving low income folks a shot at home ownership?
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Old 04-28-2018, 10:43 PM
 
608 posts, read 281,926 times
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Quote:
Originally Posted by GolfingCat View Post
What's wrong with giving low income folks a shot at home ownership?
I guess nothing, as long as they can fog a mirror.
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Old 04-28-2018, 10:44 PM
 
Location: Myrtle Creek, Oregon
11,060 posts, read 11,465,626 times
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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.
Inflation has averaged 1.46% a year for the last decade. Goods and services are only 15% higher now than they were in 2008, and wages have only just started to recover. Housing prices have long since surpassed previous highs.
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