Posted on 04/28/2018 5:09:28 PM PDT by SeekAndFind
True - but in most of the country ex California and the Northeast, that mortgage payment all in is still cheaper than renting, so turning in the keys is fairly unlikely if you can afford it. Now if the value drops from $750k to $250k, that’s a different story. But $250k to $220k? Probably going to stay put.
FWIW - the scenario I gave isn’t exactly like my scenario 10 years ago but pretty close, although our income was even higher and neither my wife nor I lost our jobs (and we had ~800 fico scores then and now). Today I own 6 houses/townhomes, including my primary.
OK,that could be true...but remember that California + the Northeast represents a good percentage of the country’s population.And also remember that while the typical mortgage in Missouri might be $150K the typical mortgage on the I-95 corridor (Boston to DC) is closer to $500K.
Median house value in the US is under $250k FWIW (and new build is around $300k). I think lenders should compare rent rates to mortgage rates on those kinds of loans. And yes, 3% down loans in most of California is a lot riskier than most of the rest of the country.
Just what we need more loans designed to find buyers that will never repay. Loans designated for unqualified minorities caused the collapse in the housing market thanks to race pimps like Obama and others that forced the set up.
Exactly.
Good job! If we all were savers and investors, imagine where the country would be.
If you want to avoid MI you need to put 20% down. FHA loans require MI no matter how much you put down.
As a former Fannie Mae, Freddie Mac, FHA and VA underwiter I can attest that there is nothing inherently wrong with a 3%-5% down payment mortgage. We did them for years with a very low foreclosure rate. The trouble started when the underwriting parameters loosened up and the light doc, no doc parameters were put on low down payment plan programs.
I don’t have a problem with no doc loans as long as the credit is good and there is a large down payment. You put 30%-50% down with $50,000 left in the bank I don’t care if you even have a job. Statistically those loans never go into foreclosure. The underwriters job is to manage risk. That’s what Fannie and Freddie used to do until they got pressured into buying the more high risk stuff.
And if anyone here ever listens to Radio, they have been Advertising to make Liar Loans for 2 years now, Stated Income no documentation. They are also making New Mortgages with imputed income(you could rent out 1 room for $800 per month, so we will ADD that to your STATED income in order for you to qualify)
The Sh&t will hit the Fan again soon in real estate
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