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This increased the cost of an FHA loan, for which I am in the market.
So yeah it did cost me.
From what I read it impacts 1 in 5 mortgages. The EO that Trump canceled out was meant for people who:
1. Had bad credit
2. Had less than 5% to put down on the home.
If you can't save 5% for a down payment you can't afford the house. If you have bad credit, you did that to yourself.
From what I read it impacts 1 in 5 mortgages. The EO that Trump canceled out was meant for people who:
1. Had bad credit
2. Had less than 5% to put down on the home. If you can't save 5% for a down payment you can't afford the house. If you have bad credit, you did that to yourself.
Eh, not necessarily true. I did it. I had the income, but because I lived in a high-rent area, I was not able to save for a down payment. I bought a place based on what my retirement income would be, not my current income, and the PITI is hundreds less than I paid for rent in the house.
People's situations vary, and you can't base everyone else's finances on your life.
From what I read it impacts 1 in 5 mortgages. The EO that Trump canceled out was meant for people who:
1. Had bad credit
2. Had less than 5% to put down on the home.
If you can't save 5% for a down payment you can't afford the house. If you have bad credit, you did that to yourself.
Exactly. This is why people got in trouble on mortgages before, 5% down on a Mcmansion requiring two wage earners to keep the payment up.
Yeah, it is tough saving 20% for a down payment but it also ensures that you won't buy something you can't afford.
From what I read it impacts 1 in 5 mortgages. The EO that Trump canceled out was meant for people who:
1. Had bad credit
2. Had less than 5% to put down on the home.
If you can't save 5% for a down payment you can't afford the house. If you have bad credit, you did that to yourself.
As a potential borrower, I have no reason to put down more than I have to. That's thousands of dollars I could keep invested in bonds or equities, generating a return.
Eh, not necessarily true. I did it. I had the income, but because I lived in a high-rent area, I was not able to save for a down payment. I bought a place based on what my retirement income would be, not my current income, and the PITI is hundreds less than I paid for rent in the house.
People's situations vary, and you can't base everyone else's finances on your life.
You can move. This is how many people do things. You wanted a specific result, so... you make changes in your lifestyle (move, change jobs, change your habits and expenses, etc...) in order to achieve various goals. You don't expect government to provide for you what you will not do to provide for yourself.
So, you could have moved to another state/area that would allow you to save to achieve your goals OR you could have improved your skills to make them more marketable to where you could have done the same where you are. Point is, in most cases, there is not an "I can't", rather there is an "I won't".
Now don't get me wrong, there is nothing wrong with people saying "I won't", I see it all the time with some who live in areas that will not support their desires, but they are unwilling to go to places that will, but... they also don't make excuses that what they "choose" to do is somehow anyones fault but their own.
BY signing this Trump has taken the Feds off the hook if a FHA loan fails. What makes me nervous is does Trump foresee another housing bubble burst in the near future?
Of course that wouldn't have happened in the first place if banks had made good loans to people that could actually pay them back.
No idea what gave you the perception that Trump's EO took the Federal Government off the hook if an FHA loan fails. That's incorrect information.
The FHA Reserve Fund is a pool of money paid by borrowers to provide FHA lenders with insurance to offset some of the losses associated with a borrower's default. When the Reserve Fund is inadequate to cover claims, the Federal Government is on the hook to make good.
As I have said, I am wary of all 11th hour EOs made by and POTUS. Trump has the right to reverse it and his Admin to perform its own due diligence to determine the adequacy of the FHA Reserve Fund to meet future obligations under his watch. His Admin may conclude the reduction is warranted, or not.
If lender claims against the FHA Reserve Fund exceed the Reserve Fund tomorrow, the Federal Government is on the hook.
Nothing wrong with a new Admin doing its own due diligence to determine the adequacy of the Reserve Fund to discharge obligations before taking action.
The Obama Admin did and determined it was necessary to increase premiums, 5-6 times. Even then, the FHA Reserve Fund was not adequate to handle the protracted consequences of the housing bubble.
I would be very surprised if the Trump Admin would ever advocate to abolish the FHA Insurance Program.
Eh, not necessarily true. I did it. I had the income, but because I lived in a high-rent area, I was not able to save for a down payment. I bought a place based on what my retirement income would be, not my current income, and the PITI is hundreds less than I paid for rent in the house.
People's situations vary, and you can't base everyone else's finances on your life.
Well it's called get a second job.
It's all about choices. Where I work there are people who complain that they can't save up for a down payment on a house. Live in the same area I do. Make the same money I do and many others, but can't save a dime to save their lives. Choices.
Obama bragged about all the jobs he created. He bragged that Americans are better off today than 8 years ago.
Some simple choices.
Cellphone. Go with the cheapest model from straight talk.
A few less nights eating out.
Do you really need the premium channel package?
Choose a less expensive house. (1 you can actually afford)
Do you really need a new car every 3 or 4 years? Mine last me 10 years or more.
What wide screen TV do you need v.s want?
Vacation every year? You can't save for a house but need a vacation every year?
I don't mean you specifically I mean in general. These are just examples of choices people can make but often choose not to. Vorizon for $120 a month or straight talk for $45?
$290 TV or $1200 TV?
$70 a month for Sat TV or 140 for the premium packages?
Never ending car payments or stick with the car you have?
I never finance a vacation, I never buy a car unless I have at least 25% to put down before the trade in. Worth having worth sacrificing for and saving for.
No one is entitled to own a house. If you can't save money to buy one how will you afford to own one? Believe it not things happen. Roof, Hot water heater, plumbing, etc.
As a potential borrower, I have no reason to put down more than I have to. That's thousands of dollars I could keep invested in bonds or equities, generating a return.
It has nothing to do with what I can afford.
And FHA doesn't have any reason to make putting down less easier for you. Whether or not to have PMI rests totally with you as you state yourself.
You can move. This is how many people do things. You wanted a specific result, so... you make changes in your lifestyle (move, change jobs, change your habits and expenses, etc...) in order to achieve various goals. You don't expect government to provide for you what you will not do to provide for yourself.
So, you could have moved to another state/area that would allow you to save to achieve your goals OR you could have improved your skills to make them more marketable to where you could have done the same where you are. Point is, in most cases, there is not an "I can't", rather there is an "I won't".
Now don't get me wrong, there is nothing wrong with people saying "I won't", I see it all the time with some who live in areas that will not support their desires, but they are unwilling to go to places that will, but... they also don't make excuses that what they "choose" to do is somehow anyones fault but their own.
OK, yes, I could have moved to a lower-quality town with lower rents and a poorer school system, where I had no family and put my daughter in daycare instead of her going to her grandparents after school, and I would have been able to save more money. I had a good job, and while I occasionally looked for others, I chose to remain in the one with the good healthcare, the good salary, and the defined pension plan. So yes, of course it was a choice to raise my daughter with a better quality of life and more opportunity, forsaking the chance to buy a house. I never said otherwise. I have no regrets as to my choice.
Exactly what did the "government provide" except the opportunity to buy a place of my own with a lower down payment? I have never been on unemployment, never needed any sort of governmental assistance with anything. I supported myself and I paid my daughter's way through college, worked without a break for 37 years and retired, and now I work part-time.
Oh wait, I am wrong. I got tuition assistance to go to a year of secretarial school when I was 19 because my father was a 100% disabled veteran and some money toward his children's education was a benefit he received for sacrificing his legs so that people like you could someday go online and say whatever nasty thing you wanted to spew for the pure enjoyment you oddly crave of being able to be anonymously nasty on the Internet. I did take that benefit. You don't like that disabled veterans' greedy children get that benefit, take it up with the VA.
Last edited by Mightyqueen801; 01-24-2017 at 10:00 AM..
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I could have moved to a lower-quality town with lower rents and a poorer school system, where I had no family and put my daughter in daycare instead of her going to her grandparents after school, and I would have been able to save more money. I had a good job, and while I occasionally looked for others, I chose to remain in the one with the good healthcare, the good salary, and the defined pension plan. So yes, of course it was a choice to raise my daughter with a better quality of life and more opportunity, forsaking the chance to buy a house. I never said otherwise. I have no regrets as to my choice.
