[arete]

Steve Diamond, a special education teacher in San Francisco, was able to buy a $195,000 condo on San Francisco's Ocean Beach three years ago through an affordable housing partnership between the city's Office of Housing and Fannie Mae that provided $50,000 toward his down payment.

Maybe life in the Republic of Kalifornia isn't so bad afterall.

Richard W.

[arete]

FYI

Comments and opinions welcome.

Richard W.

[Joe Bonforte]

So they tried to repeal the laws of supply and demand in the Bay area with rent control, and got out-of-control prices and a shortage of affordable housing.

And the solution? Squeeze the feds for more money.

Some people refuse to see reality when it kicks them in the teeth. If SF and surrounding communities would just get rid of rent control and their no-growth zoning bull^#$%, there would be plenty of housing built, and the prices of properties would fall in line with the rest of the country.

Of course, the people who own those high-priced properties now would take in the shorts. That's why it will never happen.

[Beck_isright]

Anything to keep from admitting to the Captain that the ship has hit an iceburg. So what's next? Free homes to everyone who has a job?

[ex-Texan]

Mortgage Players "Fannie" and "Freddy" are just huge, risky hedge funds ? That is what some experienced financial experts believe.

The Truth is out there.

[AdamSelene235]

I Hate these guys.

Mortgage program boosts mass transit

By John Rebchook, Rocky Mountain News

August 26, 2003

If you buy a home in the Denver area near a light-rail line or a bus station, you may be able to qualify for a larger mortgage under a program being unveiled today.

U.S. Rep. Diana DeGette, D-Colo.; Regional Transportation District General Manager Cal Marsella; Jay Wilson, state manager of National City Mortgage; and Tony Hernandez, director of Fannie Mae's Colorado Partnership Office, will release details of Fannie Mae's new Smart Commute Initiative at a news conference this morning at the light-rail station at Union Station at 17th and Wynkoop streets.

Colorado is the 13th state to launch the program, which is designed to promote homeownership near public transit.

Buyers within a half-mile of light rail or a quarter-mile of a bus stop typically will be able to qualify for a mortgage 6 percent to 8 percent larger than they would otherwise, Fannie Mae's Hernandez said.

The idea is that the closer you are to public transportation, the more likely you are to use it.

"Americans who live in close proximity to public transportation save a billion (dollars) each year by using public transportation," William Millard, president of the Washington, D.C.-based American Public Transportation Association, said last month, when Fannie Mae launched the program.

"For each participating household, the Smart Commute Initiative improves mobility options, access to job markets, helps protect the environment, conserves energy and boosts the potential for economic prosperity - all great benefits worth promoting," Millard said.

"This is a fascinating and important program," DeGette spokesman Josh Freed said.

Freed noted that housing in urban areas typically is more expensive, but if buyers can reduce their need for a car, they have more money for housing payments. The Smart Commute program is open to home buyers in Adams, Arapahoe, Boulder, Broomfield, Denver and Jefferson counties.

Although there is no guarantee that a person living near public transportation will use it, Hernandez noted that lenders that make the loans will see how much borrowers are spending on car payments.

"If you have loans on three cars, you're not going to be riding the bus or light rail, and you won't qualify for a loan under this program," he said.

[Tauzero]

"The firm said the increase is due in part to the higher cost of housing in the Bay Area."

That is completely retarded.

This can only raise prices.

It is disturbing that the people running Fannie have such a poor grasp of economics.

Long-standing obtuseness, or an effect of the Clintonoids within it?

[lelio]

Fannie Mae that provided $50,000 toward his down payment [ on a $200k condo ]

Doesn't this show that prices in San Fran are 30% overvalued if the only way you can afford to buy something is to get an advance for that much?

Sort of reminds me about the mob handing out dollars to people on their block. How could a man that just bought my dinner be bad?

[Dec31,1999]

Fannie Mae, a quasi-governmental entity that buys mortgages from lenders and then packages them to sell to the equity market, also will continue to buy more-risky loans made to people with poor credit histories or minimal down payments.

Sounds like a recipe for disaster! What happens when housing prices drop by 20%, or even 10%?