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Old 07-31-2008, 04:36 PM
 
3,583 posts, read 10,242,083 times
Reputation: 5096

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Quote:
Originally Posted by rcarrillo View Post
The only change that makes getting a mortgage harder will be:

FHA requiring 3.5% down payment, a .5% increase.
Seller-funded DPA programs will be gone.

DPA programs will still exist from the comments I have seen on the bill, its just the seller will not be allowed to fund it. This is to close the loophole that was basically the same as a seller/builder giving the buyer a "kick-back" to purchase the home. A bona-fide non-profit, family member or state, county, city government organization can still offer DPA from what I have been told.

That said, I already got 3 emails from the seller-funded DPA organizations today about how they will keep up the "good fight". They are going to take it to court again and try to introduce bills to prevent their jobs from going extinct.

Everything else will either have no effect or be a slight positive. Most of the regulations are to help at-risk borrowers refinance (but will likely not help much) or boost the liquidity and reach of Fannie/Freddie. One aspect that is not getting much attention is the new national loan officer registry will be expanded to cover more loan officers. It requires background checks and minimum standards (too minimum in my opinion) for most loan officers.
This sounds like very definate steps in the right direction! Thanks for letting us know.
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Old 07-31-2008, 04:41 PM
 
3,627 posts, read 12,402,826 times
Reputation: 2682
Quote:
Originally Posted by sneezecake View Post
I have saved for 10 years to have 20% down to buy a home.

I have a 780 credit score.

Do you all resent me for using this tax credit?





(What I don't understand is why make it retroactive? How did this stimulate anything if it wasn't even in the minds of people who bought on May 1?)

I applaud you for your fiscal responsibility.

It is something we should take for granted that people would do and I do not feel it merits what is essentially an interest free loan. I don't resent you for taking it - I take a mortgage deduction and all other legal credits and deductions**. I resent that my lawmakers are not addressing root cause of the problems.

**I was also frustrated that I only got the tax credit for my kids until they were 17 then after my last one turned 19 they upped it for later kids. My kids were still in HS and living under my roof at 18 because they had December birthdays.
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Old 07-31-2008, 06:14 PM
 
1,851 posts, read 2,908,702 times
Reputation: 2346
Quote:
Originally Posted by revelated View Post
With the butchering of downpayment assistance and possibly higher down payment requirements, in addition to stricter lending standards being a symptom, it's definitely going to be harder to get a mortgage.
Nah. It won't be any harder than it should be. It may appear "harder" because the banks relaxed their standards so much, for so long, that most people who bought homes within the last five to seven years (especially those in their early 20s and 30s) are virtually clueless to what it really takes to purchase a home and the responsibility that comes with home ownership.

The reality is that for this housing boom and bust, our government's policy of laissez-faire failed miserably in that the greed of investors, banks and consumers got way out of control. Now, tighter standards will be required and full documentation of your income will be the "gold standard" AGAIN! LOL! FHA became the stepchild of financing a home during the boom, now, it's the preferred choice.

Quote:
Originally Posted by TimtheGuy View Post
Other than DPA going away, which is a drop in the bucket, it should not be any harder to get a mortgage come fall than right now. The 'big' changes have all ready taken place.
It's only the seller-funded DPA that is being eliminated...sellers/builders/marketers will find another loophole. This hole we're in is deep and wide. It's going to take a lot of money, taxes, and "give-a-ways" for the nation to get out of it! But I agree, it won't be any harder to secure a loan, just common sense requirements that should have never gone away.
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Old 07-31-2008, 08:22 PM
 
Location: Durham, NC
1,364 posts, read 5,447,322 times
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Thanks for the compliments, folks I am definitely proud of myself for arriving at this point and can't wait to be a homeowner!

I am still curious, though. Anyone know why they would make it retroactive? I can understand retroactive to the date of the bill signing...but why April whatever-th? Was that the date the House passed it? What did this credit/loan do to motivate any first time buyer to buy a home 3 months ago?
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Old 07-31-2008, 08:51 PM
 
2,639 posts, read 5,056,610 times
Reputation: 2346
Quote:
Originally Posted by sneezecake View Post
Thanks for the compliments, folks I am definitely proud of myself for arriving at this point and can't wait to be a homeowner!

I am still curious, though. Anyone know why they would make it retroactive? I can understand retroactive to the date of the bill signing...but why April whatever-th? Was that the date the House passed it? What did this credit/loan do to motivate any first time buyer to buy a home 3 months ago?
Likely to compensate people who were in the process during the bill's initial stages. Or maybe people can use it if they recently filed...that would be great for me..doubt it though.
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Old 08-01-2008, 08:33 AM
 
Location: Raleigh, NC
467 posts, read 1,552,179 times
Reputation: 367
It passed the Senate on 4/10/08 --I'm sure the retro date correlates to that somehow.
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Old 08-01-2008, 12:19 PM
 
4,542 posts, read 11,544,610 times
Reputation: 3063
Quote:
Originally Posted by rcarrillo View Post
The only change that makes getting a mortgage harder will be:

FHA requiring 3.5% down payment, a .5% increase.
Seller-funded DPA programs will be gone.

DPA programs will still exist from the comments I have seen on the bill, its just the seller will not be allowed to fund it. This is to close the loophole that was basically the same as a seller/builder giving the buyer a "kick-back" to purchase the home. A bona-fide non-profit, family member or state, county, city government organization can still offer DPA from what I have been told.

That said, I already got 3 emails from the seller-funded DPA organizations today about how they will keep up the "good fight". They are going to take it to court again and try to introduce bills to prevent their jobs from going extinct.

Everything else will either have no effect or be a slight positive. Most of the regulations are to help at-risk borrowers refinance (but will likely not help much) or boost the liquidity and reach of Fannie/Freddie. One aspect that is not getting much attention is the new national loan officer registry will be expanded to cover more loan officers. It requires background checks and minimum standards (too minimum in my opinion) for most loan officers.
Hi RC,

So the min. down payment is going to 3.5%? Is that on Oct. 1st too? Is the minimum payment going to be the minimum investment now too 9instead of the old 2.25% down, but 3% investment)?

Are the upfront and monthly MI percentages changing at all??

Thanks,
Tim
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Old 08-01-2008, 01:33 PM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,097,275 times
Reputation: 952
Quote:
Originally Posted by TimtheGuy View Post
Hi RC,

So the min. down payment is going to 3.5%? Is that on Oct. 1st too? Is the minimum payment going to be the minimum investment now too 9instead of the old 2.25% down, but 3% investment)?

Are the upfront and monthly MI percentages changing at all??

Thanks,
Tim
There is a provision in the bill placing a moratorium on the recent FHA risk based UFMIP and MI rates, so it should go back to the good old 1.5% UFMIP and 0.5% MI rate, although I'm not sure if this won't happen until Oct. 1st or is effective immediately.
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Old 08-01-2008, 01:50 PM
 
Location: Cary, NC
1,036 posts, read 3,627,489 times
Reputation: 503
Quote:
Originally Posted by TimtheGuy View Post
Hi RC,

So the min. down payment is going to 3.5%? Is that on Oct. 1st too? Is the minimum payment going to be the minimum investment now too instead of the old 2.25% down, but 3% investment)?

Are the upfront and monthly MI percentages changing at all??

Thanks,
Tim
I need to read the bill in more detail to see if its 3.5% DOWN or 3.5% Minimum Investment. What I do know is instead of a total of 3% its now 3.5%.... bill is 700 pages so I just read the summary from Congress and the National Association of Mortgage Brokers.

The upfront and monthly MIP will remain the same as they had been. 1.5% upfront and .5% annualy.


Quote:
Originally Posted by Daddys///M3 View Post
There is a provision in the bill placing a moratorium on the recent FHA risk based UFMIP and MI rates, so it should go back to the good old 1.5% UFMIP and 0.5% MI rate, although I'm not sure if this won't happen until Oct. 1st or is effective immediately.

From what I saw... this is going to be fun. Any applications from 7/14/08 until 10/1/08 will be priced under the "risk based premium" scale. From 10/1/08 until 10/1/09 things go back to the old flat scale of 1.5% upfront and .5% per year. If nothing changes, the provision in the bill expires at that point and we start the "risk based premium" again.

Should make it fun for consumers and loan officers to keep track of. Its expected that this and the seller-funded DPA provision will be fought over between now and October, so who knows what will happen.
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Old 08-01-2008, 02:39 PM
 
119 posts, read 428,266 times
Reputation: 72
Quote:
Originally Posted by grannynancy View Post
So somebody with a very good income [I am sorry but a single person earning 75-95k or a married couple earning 150 to 170K has NO, NONE, NADA business buying a house if they need help from the government!] gets help but kids [oh, yes, he is one of those highly paid schoolteachers, so valued by our society] scrimping and saving do not. BAH HUMBUG.
When even a starter condo costs $250k, even someone making $75k might find it difficult to make ends meet.
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