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All you Republicans can do is name calling. I presented facts and you have nothing to support what you say.
You are clearly presenting the proposal as a bad thing because it's being proposed by republicans.
Regardless of whom is proposing it, the majority of us....including this independant that voted for Obama seem to think it's a decent idea for people to put some equity on the line and save as well.
You honestly don't even care about policy, you will do whatever you are told by your political party....unthinking.
P.S. Obama's main backer for the presidential run is a billionaire...as are Kerry, Soros and many many many others. He put wallstreet insiders in his cabinet and he let the big companies write the healthcare laws which you undoubtably supported. Halliburton is still getting fat contracts in Iraq, the wars continue and now they are opening up drilling again.
You are of course too far gone to recognize this reality but it is interesting to see that both parties are VERY much alike if you are not blinded.
Loosening lending standards was a strong bi-partisan effort with many dems supporting it as a means to end "racist lending practices". Bush liked it because it artificially pumped up an economy that was gasping after Clinton pumped it up by weakening credit card guidelines and thus spuring the economy by running up private and not public debt.
Prior to that Reagan pumped up the economy with public debt.
Carter and Bush I tried more sensible long-term approaches and were maligned for having bad economies and we replaced them after one term each.
P.S. The US citizens are just as culpable. We are the ones speculating on houses, living outside our means and voting out politicians that would dare put the breaks on the gravy train.
Where are there any facts in what you posted? You call opinions facts?
It is a fact that the Republicans were in office all during the Great Depression. It is a fact that W Bush put this country into trillions in
debt. It is a fact that there were no WMDs. It is a fact that W Bush
passed a bill called the Clean Water Act that put poisons back into
American's drinking water. It is a fact that W Bush passed a law called the
Clean Air Act that put pollutants back into our air. The Republicans are
all about big business and they DO NOT care about ANYONE else. It's
been obvious for many years.
I don't have to "make it so" since it is simply a matter of historical fact.
Not only did he want the taxpayer to pay for the down payment of the minorities, but he also wanted to to use tax payer money to build them houses to buy. Check out the $440 BILLION "commitment" to Fannie and Freddie. Who said Republicans don't know how to spend money?
A Home Of Your Own: Expanding Opportunities for All Americans (http://www.americandreamdownpaymentassistance.com/whdoc06012002.cfm - broken link)
Providing Downpayment Assistance. The single biggest barrier to homeownership is accumulating funds for a downpayment. The President has proposed $200 million annually for the American Dream Downpayment Fund to help roughly 40,000 families a year with their downpayment and closing costs.
Increasing the Supply of Affordable Homes. The President wants to dramatically increase the supply of homes available to low and moderate income families. The President has proposed the Single-Family Affordable Housing Tax Credit, which will provide approximately $2.4 billion to encourage the production of 200,000 affordable homes for sale to low and moderate income families.
Increasing Support for Self-Help Homeownership Programs. The President’s budget triples funding for organizations, such as Habitat for Humanity, that help families help themselves become homeowners through sweat equity and volunteerism in their communities.
Substantially increase by at least $440 billion, the financial commitment made by the government sponsored enterprises involved in the secondary mortgage market, specifically targeted toward the minority market;
Last edited by Finn_Jarber; 05-24-2011 at 03:44 PM..
lol...These fake scenarios you're dreaming up have been regulated out of the market. Not a single thing you've posted can be or would done by any lender. These dreams you've cooked up can't be financed, can't make it through underwriting and my lenders are laughing at you....lunch is almost over and we have tears in our eyes...
you're silly, and good entertainment.
FWIW, I'm sure I'll just be accused of using a poor lender or something but my experience sure mimics more of what walidm is saying than pghquest.
I just recently (April, 2011) bought my first house. Agreed to a price on the house of $279k, asked buyers to cover closing costs so total amount financed was about $289k. I walked away about $10k poorer from the whole ordeal, far from no down payment. Per my mortgage guy, this was the absolute lowest I could come out of pocket given current FHA regulations. Don't get me wrong, I had more if necessary, as my wife and I decided we wouldn't even shop for a home until we had at least $25k on hand, but I'd rather have that extra cash in savings than tied up equity.
As for increasing down payment to 5%, I don't have a big problem with that but, IMHO, that extra 1.5% would be much better used setting in some kind of an escrow account only to be used in lieu of a default. For instance, on my purchase, that would equate to more than 2 mortgage payments as an "insurance" for both me and the lenders. Then, if there's a job lost or something you have a little reserve/cushion that could prevent a foreclosure. I don't know how feasible something like that would be but it sure makes sense to me. That's also exactly what I would have done with my 3.5% had I been able to land one of these mystical "no money down mortgages in 2011" that are being mentioned.
It is a fact that the Republicans were in office all during the Great Depression. It is a fact that W Bush put this country into trillions in
debt. It is a fact that there were no WMDs. It is a fact that W Bush
passed a bill called the Clean Water Act that put poisons back into
American's drinking water. It is a fact that W Bush passed a law called the
Clean Air Act that put pollutants back into our air. The Republicans are
all about big business and they DO NOT care about ANYONE else. It's
been obvious for many years.
Links to these facts? Most of them look like opinions.
Well-underwritten loans, regardless of down payment, were not the cause of the mortgage crisis, and explains in part why the primary lending vehicle accounting for the majority of the current market is an FHA insured product. FHA re-assumed this prominence when the market began to falter and has been noted by some economists as having saved the market. FHA rules are full doc guidelines.
Lenders current REO inventory is about 875,000 with another million ready to hit their books and an anticipated 3-5M in shadow inventory.
FHA is solvent and running fine with it's current structure. It is anticipated it will reach the current capital reserve ratio set by law in 2014 based on recent changes implemented April 18 2011. http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/files/11-10ml.pdf (broken link)
Quote:
“After careful consideration and analysis, we determined it was necessary to increase the annual mortgage insurance premium at this time in order to bolster the FHA’s capital reserves and help private capital return to the housing market,” said Stevens. “This quarter point increase in the annual MIP is a responsible step towards meeting the Congressionally mandated two percent reserve threshold, while allowing FHA to remain the most cost effective mortgage insurance option for borrowers with lower incomes and lower down payments.”
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