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The FHA came out and announced that they will be allowing the $8,000 tax credit to be used as the downpayment. The money will be accessed via a bridge loan offered by the lender until the filing for the credit can be made.
Does anybody else think it is a VERY BAD IDEA to let ANYONE buy a house with NOTHING in their pocket? Haven't seen this before? I think I know the ending, and it is NOT GOOD...
One question I have is, is this a refundable tax credit? Because if not, I would think that not many people are going to qualify for the full $8,000 credit.
Does anybody else think it is a VERY BAD IDEA to let ANYONE buy a house with NOTHING in their pocket? Haven't seen this before? I think I know the ending, and it is NOT GOOD...
Does anybody else think it is a VERY BAD IDEA to let ANYONE buy a house with NOTHING in their pocket? Haven't seen this before? I think I know the ending, and it is NOT GOOD...
Yes, a very very bad idea, and really really stoooooooopid. This is in reality 100% financing, as the buyer has nothing invested.
If you can't put down 10% on a home, then keep working and saving, and come back when you can actually afford to buy a home.
Yes, a very very bad idea, and really really stoooooooopid. This is in reality 100% financing, as the buyer has nothing invested.
If you can't put down 10% on a home, then keep working and saving, and come back when you can actually afford to buy a home.
Yeah, I also believe this is such a stupid idea. First of all, some people can potentially owe taxes. So they shouldn't even apply this 8K tax credit until all the taxes are filed (either for 2009 extension or 2010).
Second, if people can't put a sizable downpayment, they don't deserve to own a home. It's debatable what's considered a "sizable" downpayment. In large markets it should be at least 10% (meaning homes costing over 400-500K). In small markets, that downpayment should be at least 15 percent (for homes less than 300K).
I know people say they need to conserve cash and that's why they try to put as little down as possible. I see it the other way and say; they really do not have enough cash for life's emergencies (unexpected job loss, death, birth, unexpected homeowener expenses). They need to keep on saving in order to have that big cushion to afford a home with a real downpayment.
Does anybody else think it is a VERY BAD IDEA to let ANYONE buy a house with NOTHING in their pocket? Haven't seen this before? I think I know the ending, and it is NOT GOOD...
The only difference between 2005-2007 and now is that we're losing half a million jobs per month. Oh. Maybe these loans are going to be even worse.
And already in the last year, those FHA buyers have already proven themselves soooooo reliable:
Yes, a very very bad idea, and really really stoooooooopid. This is in reality 100% financing, as the buyer has nothing invested.
If you can't put down 10% on a home, then keep working and saving, and come back when you can actually afford to buy a home.
So true.
And if the goverment still wants to insist on giving away money isn't it better to match a dollar for every dollar the buyer saved for downpayment to a max of $8,000. That would at least motivate some people to save something.
And if the goverment still wants to insist on giving away money isn't it better to match a dollar for every dollar the buyer saved for downpayment to a max of $8,000. That would at least motivate some people to save something.
Excellent idea.
Unfortunately, savings does not stimulate the economy. Debt does.
We are so whacked.
One question I have is, is this a refundable tax credit? Because if not, I would think that not many people are going to qualify for the full $8,000 credit.
If you haven't owned a home in the last 3 years and make less than 75k for a 1 person or 150k for a 2 person home you qualify basically. Easy to get.
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