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I would say if you find the deal and price you are looking for to purchase now. Inflation is inevitable and interest rates will continue to increase. A lot of people are listing prices that are somewhat negotiable, but the flexibility may not be there if you wait too long. They may just allow foreclosure like so many people are doing today!
THOUSANDS of buyers are purchasing with 3.5% down every day. It is called FHA.
actually, they are buying with 0% or -2% down now that they can monetize their $8000 tax credit. How long before the Obama administration gets the genius idea to give us $10k just to buy a house?
actually, they are buying with 0% or -2% down now that they can monetize their $8000 tax credit. How long before the Obama administration gets the genius idea to give us $10k just to buy a house?
We decided as lenders we would not participate in allowing the $8k loan to be used for the buyer's funds. Have you heard of anyone actually closing with this method yet?
It's true, alot of folks are taking advantage of the FHA loan presently. I was JUST discussing one with a fellow Realtor & her buyer about 30 mins ago.
3.5% fha makes things a lot more attractive for buyers, on a 350k you are basically paying ~10k premium total. But what you get is much reduced risk
1) The 20% downpayment can now be saved to pay monthly mortgage in emergency
2) If sht hits the fan in a doomsday situation, and your property value drops significantly, you can walk away with a lot less capital loss.
For those 2 reason alone, i think everyone should at least seriosly think about the fha loans, as oppose to dead set on a 20% down conventional.
This is the moral hazard that is FHA. It allows people to speculate in the real estate market with taxpayer money leaving them with almost no exposure or penalty if the property tanks. Considering the government is increasingly becoming demand side oriented, they'll encourage this type of behavior. They'll try to get as much of the public into the real estate market with these loans before they try to inflate away the debt of the entire country to screw over China, Japan, and the Saudis.
This is the moral hazard that is FHA. It allows people to speculate in the real estate market with taxpayer money leaving them with almost no exposure or penalty if the property tanks. Considering the government is increasingly becoming demand side oriented, they'll encourage this type of behavior. They'll try to get as much of the public into the real estate market with these loans before they try to inflate away the debt of the entire country to screw over China, Japan, and the Saudis.
We decided as lenders we would not participate in allowing the $8k loan to be used for the buyer's funds. Have you heard of anyone actually closing with this method yet?
No. But I was under the impression that this only became possible a week or two ago. I give you props for being responsible.
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