[quote=patientrenter]I think you’re seeing a tug of war going on here between the conflicting inner selves of the piggs. Selfishly, we all know that buying a house with little or none of your own money (e.g. FHA deals) is almost certainly a great deal.[/quote]
The reason I oppose most FHA loans isn’t because they are a great deal…its because they are a RISKY deal. Particulary at a time when unemployment is rising. In my opinion, its irresponsible for the Feds to be backing these types of loans when we are in the middle of a foreclosure crisis when they know full well that the default rate on FHA’s is much higher than conventional loans.
I have nothing against the person who started this thread, but lets suppose he/she purchases a home for $450K with 5% down. There’s a real possibility that by the end of the year this person will have a property that’s only worth $400K, yet will be forking out big monthly payments on a house that has depreciated in value. Is it still a great deal then ? This person will be just another statistic on the verge of a potential foreclosure if his/her income decreases for whatever reason.
Once again, my advice would be to find a home that is affordable at a much lower price range that reduces the financial risk.
