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How funny! The gross up is standard for any bank, credit union, broker, etc... So, you would have to shut them all down and where would you get a loan.
I said we need to shut down wholesale lending. Make those who write the loans the same ones who have to hold them when they go bad. Then that big "C" for "Capacity to repay" that's part of the responsible lending "three Cs" would have actual meaning. A 90-year old with no income other than SS has little real capacity to repay that loan--it WILL almost certainly end up in foreclosure when he/she goes into a nursing home or dies. If you had to eat the loss when that happens, you wouldn't be nearly as cavalier about "I don't make the rules."
Wholesale mortgage lending pays brokers to make loans, and those brokers could care less about the long term implications. That separation of authority to act from responsibility is deadly.
Build a banker a fire Keep him warm for a few hours Throw a banker into a fire Keep him warm the rest of his life
I said we need to shut down wholesale lending. Make those who write the loans the same ones who have to hold them when they go bad. Then that big "C" for "Capacity to repay" that's part of the responsible lending "three Cs" would have actual meaning. A 90-year old with no income other than SS has little real capacity to repay that loan--it WILL almost certainly end up in foreclosure when he/she goes into a nursing home or dies. If you had to eat the loss when that happens, you wouldn't be nearly as cavalier about "I don't make the rules."
Wholesale mortgage lending pays brokers to make loans, and those brokers could care less about the long term implications. That separation of authority to act from responsibility is deadly.
Build a banker a fire Keep him warm for a few hours Throw a banker into a fire Keep him warm the rest of his life
Very valid points regarding holding the paper. However, i am pretty sure loans originated through retail channels have a higher foreclosure rate than those through wholesale. I will look for some information on that. Since you seem pretty sure that wholesale channels are worse, do you have some data to back that up? Not trying to fight with you, just wondering if you can back up your opinion with any facts. And i will attempt to do the same.
I totally disagree on a social security income person going into foreclosure. When they die, the siblings or heirs would get the property, sell and split proceeds if any. Plus, the social security income is guaranteed, you could lose your job tomorrow.
I am not cavalier about the rules, but i follow the equal credit opportunity act which says you cannot discriminate based on age. When(i am assuming you are a homeowner) you bought your home, they based your income on your gross income even though you didnt bring that entire amount home. Shouldnt the senior on social security play by the same rules you did?
In flyover country, there are any number of places where you can get a one bedroom condo in an unfashionable but reasonably safe and secure area in the $50-$60K range. Figure in taxes, insurance and condo fees, and you're talking about $500-600/month for housing costs. Which is doable on $1600/month of SS if you're careful and don't have other debt.
In flyover country, there are any number of places where you can get a one bedroom condo in an unfashionable but reasonably safe and secure area in the $50-$60K range. Figure in taxes, insurance and condo fees, and you're talking about $500-600/month for housing costs. Which is doable on $1600/month of SS if you're careful and don't have other debt.
Very good suggestion -
Planning my retirement in the Philippines.
Live like a king - cooks, maids, driver, great weather, clear water, friendly people, old British colony - English speaking....$700 a month....
So how much should a borrower be required make in income to purchase a $60k place with 20% down with a PITI payment of $405/mo.? $100k/yr??
$9.50/hr. might not get you far with your lifestyle in your neck of the woods, but don't think things are uniform across the US bud.
Again it is all relative. Have you heard about the foreclosures, short sales and modifications in California on properties with 7 digit values? Do you think those were low income buyers? It is not how much you make, it is how you mangane your finances and how/if you pay your obligations whether you make $15k/yr, $115k/yr or $1.5mil/yr. Did you hear Nicholas Cage is broke? How can that be....he makes $20mil per picture??
----" with 20% down "--
Somehow I doubt anyone who states their sole souce of income is SS is gonna have 20% to put down regardless how cheap that house is.
Clearly you have no idea what you are talking about.
Really?
I read nowhere that the OP had any other income besides SS
--if--he had 20% cash for a downpayment, he would be drawing at least a little bit of interest on that.
He stated SS was his only income
Try using some logic
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