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Old 05-05-2018, 06:05 AM
 
8,845 posts, read 5,462,494 times
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Quote:
Originally Posted by Sharpydove View Post
Home ownership is not a right; it is a privilege. To deserve that privilege takes planning, responsibility, and resources.
If you cannot put money down, you better have at least a years worth of living expenses saved, pristine credit, no other debt, and a stable job. Otherwise, I wouldn’t loan you a dollar, let alone hundreds of thousands of dollars.
And if you get an FHA loan with the strict rules and underwriting as well as banks checking everything three times due to government rules as well as them wanting to be able to sell the loan, then it's your right and privilege to buy that home as long as you qualify. No one asked you for a dollar.
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Old 05-05-2018, 06:57 AM
 
982 posts, read 656,433 times
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Quote:
Originally Posted by LifeIsGood01 View Post
And if you get an FHA loan with the strict rules and underwriting as well as banks checking everything three times due to government rules as well as them wanting to be able to sell the loan, then it's your right and privilege to buy that home as long as you qualify. No one asked you for a dollar.
Sorry, but taxpayers and responsible people end up on the hook for those who don’t have their finances in order. “Qualified borrower” is an oxymoron to me, and banks are still loaning to risky shoppers.
Just because someone is desperate enough to “sell you a loan”, doesn’t excuse you from having the common sense to see that you really can’t afford it, now does it?
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Old 05-05-2018, 07:29 AM
 
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Quote:
Originally Posted by Sharpydove View Post
Sorry, but taxpayers and responsible people end up on the hook for those who don’t have their finances in order. “Qualified borrower” is an oxymoron to me, and banks are still loaning to risky shoppers.
Just because someone is desperate enough to “sell you a loan”, doesn’t excuse you from having the common sense to see that you really can’t afford it, now does it?
It was an issue in the past but now they are not losing money. In Florida in the entire state there are only 49 HUD homes for sale, which means they are FHA foreclosures. Some of these people may have already paid 15 or more years of mortgage and mortgage insurance. On one home HUD paid $8K for the home and is selling it for $60K.

So don't be sorry and if they can't afford it they would not qualify. A lot of qualified people have catastrophic illnesses and have to choose between medicine or care and have to stop paying on their home even if they did put down 20% and had good jobs and a money saved at the time, and those loans have not been insured like FHA. When rates were 3.5% FHA was getting 0.85% for insurance. That's almost 1/4 of what the bank makes on the home. Plus the home can be sold for more than is owed. Don't worry about FHA, when it needs to raise rates it does. I think HUD is the one that is more of a risk and debt problem than FHA.


Foreclosures are becoming less and less in most areas, and a lot of those loans don't even have anyone paying mortgage insurance on it. So if someone needs a home and the only way they can get it is FHA it's none of your concern. The total payment including the mortgage insurance payment has to fit into their debt to income ratio.

The bank does not lend money to those who can't afford it, so your post makes no sense. If a loan is approved, no need for you to worry about it, there are also 0% and less VA and USDA loans, yes you can borrow more than the home is selling for. Worry about your life.
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Old 05-05-2018, 08:17 AM
 
982 posts, read 656,433 times
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^^^What you make me worry about is the next housing crash! “If a loan is approved, no need for you to worry about it”- that is delusional. Unfortunately it is worrisome because if you bail out down the road, you destroy your neighbors’ home values. I doubt you care, though.
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Old 05-05-2018, 08:24 AM
 
8,845 posts, read 5,462,494 times
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Quote:
Originally Posted by Sharpydove View Post
^^^What you make me worry about is the next housing crash! “If a loan is approved, no need for you to worry about it”- that is delusional. Unfortunately it is worrisome because if you bail out down the road, you destroy your neighbors’ home values. I doubt you care, though.
As long as the rules stay in place and only qualified people are give loans you don't have to worry. The last crash happened because unqualified people were getting loans and these loans were sold and traded on wall street as safe securities. Plus nowadays many banks offer their own 3% down payment programs and they don't require mortgage insurance for the life of the loan, so you seem to be targeting FHA unfairly as if it's a handout. It's not is not even a lender it's an insurance program.

You don't need to worry about me or my neighbors. I just got repairs done to my home which increased the value and also I got hurricane shutters and am expecting a 30% refund for property insurance over payment in the mail and my mortgage escrow dropped so my total mortgage payment just went down 8%. I also make extra principal payments every month.

Last edited by LifeIsGood01; 05-05-2018 at 08:37 AM..
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Old 05-05-2018, 08:59 AM
 
Location: Great White North Hills
10,772 posts, read 13,238,801 times
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It's just as easy to default on a home that was purchased with a 20% down payment.
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Old 05-07-2018, 10:09 AM
 
220 posts, read 103,990 times
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Quote:
Originally Posted by Sharpydove View Post
Sorry, but taxpayers and responsible people end up on the hook for those who don’t have their finances in order. “Qualified borrower” is an oxymoron to me, and banks are still loaning to risky shoppers.
Just because someone is desperate enough to “sell you a loan”, doesn’t excuse you from having the common sense to see that you really can’t afford it, now does it?

The system is supposed to be setup with a somewhat predictable amount of failures and a buffer in case the percentage of failures spikes. The system worked fine until they threw out the rules and started loaning to anyone breathing. I see no problem with riskier loans as long as they are limited, closely watched and go through a thorough approval process. The system should be self sustaining.


Expecting the general public to know how much they can afford is not going to get you anywhere. I am constantly amazed at how many people have no idea where they actually stand financially. Many of them with an income that should allow them to easily save. It needs to be monitored on the industry/government side of things.
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Old 05-08-2018, 08:47 AM
 
Location: Johnson City, TN
19,320 posts, read 13,885,463 times
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Quote:
Originally Posted by Sharpydove View Post
Home ownership is not a right; it is a privilege. To deserve that privilege takes planning, responsibility, and resources.
If you cannot put money down, you better have at least a years worth of living expenses saved, pristine credit, no other debt, and a stable job. Otherwise, I wouldn’t loan you a dollar, let alone hundreds of thousands of dollars.
But you'll be fine with people being in rentals paying hundreds more per month than owning a similar dwelling, correct?
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Old 05-08-2018, 09:02 AM
 
8,845 posts, read 5,462,494 times
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Quote:
Originally Posted by Sharpydove View Post
Sorry, but taxpayers and responsible people end up on the hook for those who don’t have their finances in order. “Qualified borrower” is an oxymoron to me, and banks are still loaning to risky shoppers.
Just because someone is desperate enough to “sell you a loan”, doesn’t excuse you from having the common sense to see that you really can’t afford it, now does it?
Yes because crooked banks lent out the money, FHA does not loan money. The tax payers had to pay for all the banks that were too big to fail. Anyway that was a problem back when the housing bubble collapsed and it was not because of FHA loans.


The real causes of the housing and financial crisis were predatory private mortgage lending and unregulated marketshttps://www.americanprogress.org/iss...ousing-crisis/Don’t Blame Federal Housing Programs for Wall Street’s Recklessness
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Old 05-08-2018, 10:09 AM
 
12,323 posts, read 8,745,833 times
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Quote:
Originally Posted by Copanut View Post
It's just as easy to default on a home that was purchased with a 20% down payment.
Yes, but unless the value has dropped quite a lot, it would make much more sense to sell it than to let it go into foreclosure and get nothing.
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