[quote=HLS]
F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. [/quote]
HA-HA. Good one. I’ll have to use it sometime.
[quote=bearishgurl]Why would ANYONE want to buy property with only 3.5% down?? Why not just RENT and save more $$ and later obtain a loan with better TERMS??
[/quote]
I’ll tell you many whys. B/c coming up w/20% down 10 years ago was easier than coming up w/even 5% down today when looking at price of houses. B/c banks are making it difficult to lend. B/c the government is bent on propping up housing, so housing is still unaffordable for many and FHA is a way to get your foot in the door. For those who want to buy, but are uncertain of the real estate market, losing 3.5% is less risky than 10-20%.
Why not wait? I’ll give you an example. Suppose you graduated college in 2001/2002. The real estate market was started its incline. You don’t have a steady job yet and you’re focused on getting your career squared away doing the right thing. By the time that happens, prices seem absurd. You continue to rent and save, hoping to find something that makes sense. Finally the bubble pops around 2008. Now the government is throwing money to keep it up and people are losing jobs left and right. Your own job may be in jeopardy. So you wait some more.
That’s all you’ve been doing is waiting for 10 years. FHA starts looking good when you’ve been waiting that long. That’s what the government wants you to do is get an FHA loan.
Or you can continue to wait. I’m going to assume scaredy’s username. I’m scared I’ll be in a senior home by the time this real estate mess resolves. At least I won’t have to worry about buying anymore. 😉
[quote=eavesdropper]Yes, I’m older than dirt, but I remember just wanting to get the hell out of my parents’ house at any cost. If an apartment had affordable rent and at least intermittent running water in its ONE 4′ x 3′ bathroom, I signed on the dotted line. Buying was something you saved for, and, when you bought, a substantial amount of your capital was in that property.
[/quote]
I can so relate. I moved out when I was 18 into a small, run-down apartment and was thrilled about that. And I just saved. Seems like another life now when you look back.
[quote=CONCHO]Ya gotta live somewhere. Might as well get an FHA loan, I say.[/quote]
