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I have always felt it was only a matter of time before government turned those housing moratoriums against the people. Government never does anything for free. Government only gives when what it receives is greater than what it is giving.
The agenda is get the people fixed up on 'Right to Housing' and keep your home regardless of your financial choices and spending habits until.
Suddenly, its time to start making payments again. You have either blown off the money you should be using to pay mtg or simply put have more house than you can afford. foreclosures sore and foreign investors and corporations snag up property at ridiculously low rates while your new housing choices become rentals where your credit and government status is sorely important for your living standards. Now government through privatized means has more control over the housing, and more control over the people.
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The Biden Administration is going to lower down payments from 20% all the way down to 3% for million dollar mortgages.
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LOL. DH has been in real estate since the early 90s. I just asked when he last heard of anyone having to put 20% down on a mortgage. He had to think. His best guess was '89.
The base loan limits as well as the expanded loan limits in high-cost areas are based off Housing data and sale prices. In fact it was the HERA Act of 2008 which set the guidelines for, how, when and by how much loan limits will increase.
Quote:
The Housing and Economic Recovery Act (HERA) requires that the baseline CLL for the Enterprises be adjusted each year to reflect the change in the average U.S. home price. Earlier today, FHFA published its third quarter 2022 FHFA House Price Index® (FHFA HPI®) report, which includes statistics for the increase in the average U.S. home value over the last four quarters. According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 12.21 percent, on average, between the third quarters of 2021 and 2022. Therefore, the baseline CLL in 2023 will increase by the same percentage.​
High-Cost Areas
For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the applicable loan limit will be higher than the baseline loan limit. HERA establishes the high-cost area limit in those areas as a multiple of the area median home value, while setting the ceiling at 150 percent of the baseline limit. Median home values generally increased in high-cost areas in 2022, which increased their CLL. The new ceiling loan limit for one-unit properties will be $1,089,300, which is 150 percent of $726,200.
Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $1,089,300 for one-unit properties.
It's the reduction of the downpayment from 20% down to only 3% which is the problem here.
This is the same type of issue that happened that caused the previous housing bubble and crash. Clinton wanted more people to be able to buy homes.
Biden stated the reason he wants the 3% down payment back is so more people can get a house, which will push up housing prices more.
Unfortunately when this Biden Administration policy causes another epic housing crash, the left won't remember this action which caused it to happen.
The 3% down payment is nothing new. Fannie, Freddie and FHA loans are nothing new. This isn't a Biden policy. Things are far more regulated now than they were prior to the crash.
Stated income, stated asset loans are no more. Option Arms with negative amortization are no more. Many of the crazy loan programs that really picked up in 03-04 and flooded the market until the crash are gone.
The 3% down payment is nothing new. Fannie, Freddie and FHA loans are nothing new. This isn't a Biden policy. Things are far more regulated now than they were prior to the crash.
Stated income, stated asset loans are no more. Option Arms with negative amortization are no more. Many of the crazy loan programs that really picked up in 03-04 and flooded the market until the crash are gone.
"CNN
—
Bank of America is offering zero down payment mortgages with no closing costs for first-time homebuyers in certain Black and Hispanic neighborhoods in a new program designed to chip away at inequality in the housing market.
The new loan, launched this week, requires no minimum credit score nor mortgage insurance, which lenders typically charge when borrowers put less than 20% down."
"CNN
—
Bank of America is offering zero down payment mortgages with no closing costs for first-time homebuyers in certain Black and Hispanic neighborhoods in a new program designed to chip away at inequality in the housing market.
The new loan, launched this week, requires no minimum credit score nor mortgage insurance, which lenders typically charge when borrowers put less than 20% down."
Nothing to do with the Biden Administration and those aren't government backed loan. With that said, still nothing like what went in during the mid 2000's. Debt to income ratios still need to be maintained. Option arm, negative amortization loans aren't part of it. Not to mention 0% loans do and have existed with VA and USDA programs.
Nothing to do with the Biden Administration and those aren't government backed loan. With that said, still nothing like what went in during the mid 2000's. Debt to income ratios still need to be maintained. Option arm, negative amortization loans aren't part of it. Not to mention 0% loans do and have existed with VA and USDA programs.
You are going to have to keep moving the goal posts.
Just like Clinton lowering lending standards created the housing bubble and following housing crash...
Not what happened. You can hate Clinton as much as you want, it will still not be what happened.
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