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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.
I'm in the industry and haven't seen these. The requirements for this one bank is far stricter than anything that existed in the mid 2000's. Not to mention not government backed, nothing to do with the Biden administration. Speaking of moving the old posts, you started the thread based on a false premise that Fannie and Freddie loan limits have anything to do with the Biden Administration and are now pulling out examples that have nothing to do with government backed loans.
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.
Threads like these serves to illustrate who are actually somewhat engaged with mortgages - even to the point of just having one - and who aren't.
Loan limits increase most years, guess what they also increased during every year of the Trump administration.
Quote:
Originally Posted by Smash255
1. This is specific to high-cost areas, as those areas loan limits are higher than the country as a whole
2. Loan limits increasing is nothing new. It increases most years and this will be the seventh year in a row of the loan limits increasing
3. This doesn't change DTI requirements.
Exactly.
It is almost like you can tell who is gullible enough to blindly swallow whatever political spin is fed them, because they are the ones most likely to rush in here to regurgitate it.
Brilliant plan to make sure the next generation middle class will own nothing.
Not sure what the point of this post is, but again loan limits for Fannie and Freddie backed loans have nothing to do with the Biden Administration. They are set by FHFA in accordance with the requirements set in the 2008 Home and Economic Recovery Act
Just like Clinton lowering lending standards created the housing bubble and following housing crash, the Biden Administration has announced they are going to double down on stupid.
The Biden Administration is going to lower down payments from 20% all the way down to 3% for million dollar mortgages.
Why? They state it is to get home prices to increase.
But hey, just like Democrats did last time, they will simply blame Republicans when the over inflated housing market crashes and burns due to people not paying back mortgages they never should have taken out in the first place.
Hey, hey, hey there, now wait just a minute!!! Biden is also demanding that borrowers not only have 3% but they need a pulse. So it's not like dead people can get these loans.
You should check out places like Tokyo where you take out a mortgage and so does your son and your grandson. It's the same mortgage.
In some states, most of the present home buyers never expect to ever have their mortgage paid off when they buy their new home.
The Great Recession came from the stock market, not the home finance sector of the economy.
Once mortgages were not longer treated like shares of stock, the recession finally stabilized and then things turned to normal again.
Now, we are beset with an entirely different set of economic problems than those of 2008. And we are responding to them in entirely different ways than we did in 2008.
I don't know if our response will lead to another recession or not. But whatever comes will nt be a repeat of 2008. Everything that caused that recession has already dismantled and thrown away.
Different economy "during every year of the Trump administration."
Loan limit increases are tied to the median home sales price increases from the 3rd quarter of this year compared to the 3rd quarter of the year prior.
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