Posted on 06/22/2021 2:05:42 AM PDT by Libloather
YOUNGSTOWN, Ohio (WKBN) – While many traditional home buyers are being squeezed out of the market by inflated real estate prices and builders are working to keep up with demand amongst the shortage of skilled labor and supplies, the Federal Housing Administration (FHA) is making it easier for buyers with a load of student debt to purchase their first home.
Student debt has risen to historic levels over the past 20 years, putting those who should typically be able to afford a home out of the market completely.
Now, the FHA is relaxing the way it assesses student-loan debt when weighing eligibility for homebuying assistance.
The policy updates remove the current requirement that lenders calculate a borrower’s student loan monthly payment of one percent of the outstanding student loan balance for student loans that are not fully amortizing or are not in repayment. The new policy bases the monthly payment on the actual student loan payment, which is often lower, and helps homebuyers who, with student debt, meet minimum eligibility requirements for an FHA-insured mortgage.
“These changes remove unnecessary constraints for otherwise creditworthy borrowers and reinforce FHA’s ability to serve those who need us most, including first-time homebuyers and underserved communities,” said Principal Deputy Assistant Secretary for the Federal Housing Administration Lopa Kolluri.
(Excerpt) Read more at wkbn.com ...
They have everyone's picture on file?
What could go wrong?
It’s 2008 all over again.
I’ll tell this story over a Pentagon clean-up crew guy that worked in my area back eight years ago.
The kid was smart but was constantly getting bad advice (from the community support folks, to high school counselors). The kid was talked into signing up and getting student loans of $15k to attend a commercial ‘fake’ skill college. Fifteen months into this, a state audit occurred, and the college fell apart in less than a week. What the kid discovered was that the courses completed meant nothing...the potential degree was worthless, and he owed $15k in student loans.
The system, from top to bottom is corrupted.
The last time “Feds look[ed] to increase home ownership” we had the junk mortgage crisis of 2008.
“Hey, I see you have student loans that you can’t pay off, huh?”
“Yeah, man, I have so much debt. I have trouble paying all my bills.”
“Would you like more debt?”
“What? Why would I want more debt?”
“To own a house. I could get you a mortgage. It’s more debt, but who cares?”
“What if I can’t pay it off?”
“Pfffgh! We’ll stick the taxpayers with it. Like with the student loans. You don’t actually have to pay for anything. It’s a communist society, right? Own nothing, be happy.”
It’s astonishing.
And one of the main players I feel sure is involved here again (Maxine Waters) was a key figure before.
There are videos out there with her and Barney Frank as far back as 2003 talking about how solid Fannie Mae and Freddie Mac were, there was no danger of a collapse, and all the worry over it was not really worry but outright racism.
Barney Frank may be in a nursing home somewhere crapping his diapers, but he was never called to account.
And neither was Maxine Waters.
Here is an excellent lesson for them if they have debt and cannot pay their outstanding debts if they take on more: NO MORE LOANS! Easy, no further study required, and they graduate with honors!!
Because when you’re knee deep in debt, they’re happy to help you be neck deep in debt.
“inflated”
A price that’s “inflated” means a price that will come down as time goes on. Those wanting something whose price is inflated need only to be patient until the price comes down.
Seems he would have a case against the institution and loan agency based on Fraud. The Loan agency should be responsible for due diligence of institutions they make loans for.
HUD Mortgagee Letter 2021-13 spells out the changes specifically.
https://www.hud.gov/sites/dfiles/OCHCO/documents/2021-13hsgml.pdf
For outstanding student debt where the monthly payment on the credit report is $0, debt is now calculated at .5%. Was 1%.
I am assuming that’s a rhetorical question. Race identification is on every application.
By giving away our money, of course.
Force the Universities to use their TAX FREE ENDOWMENTS to pay off Student loan debt!!!
Force the Universities to use their TAX FREE ENDOWMENTS to pay off Student loan debt!!!
X2, G Larry!
I am white, retired from the military and still work for a living making some good money. How in the hell do I get a mortgage that I will not have to pay back because I want to waste money on other things that are maybe useless? All I see are others getting something for nothing because they are/were stupid and made bad choices.
The next SJW degree in “Black Lesbian Dance Theory for White Transgendered Men” will be paid for by me and then I can ask them to give me fries with that order.
The last thing the Feds want is more home ownership, if anything, they want to control housing and decide where you will live.
“You will own nothing and like it.”
Warren Buffet bought 10’s of thousands of homes the last time and now Blackstone is buying and paying way over the sale price. They had 80,000 homes.
They announced buying a company that rents 17,000 homes.
https://www.theguardian.com/us-news/2021/jun/22/blackstone-6bn-deal-homes
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