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  • November 22, 2009 at 11:27 AM #486201
    scaredyclassic
    Participant

    please, someone, help me. seriously. I am starting to feel like there is no reason not to borrow the fha limits of 500k and just buy the fanciest house I can find. It’s not that I expect to make anything off of it, I just feel liek the financing is too good to pass up. is this wrong? I feel no obligation to pay back the loan if it’s a bad deal in the future; I don’t see how I can really lose. I am ready to buy anything with tons of upgrades at or around 500,000.

    November 22, 2009 at 11:50 AM #485350
    SD Realtor
    Participant

    Scaredy the best thing you can do is run the numbers for both scenarios. This is something you can very easily do yourself. Talk to people offering conventional financing and FHA financing and see the difference in a few different scenarios. The primary difference will be in the closing costs and the monthly payment right?

    The thing that is troubling is that you are making an implication that you are simply wanting to buy because of financing opportunity. I understand that you feel like you are “missing out” and that is common. I am just not so sure it is the best reason to buy a home.

    I guess I would say that if you feel you have no obligation to pay a creditor then the answer is obvious and you should finance as much as possible. It is unfortunate that you feel that way but understandable. Your actions reenforce the ideas that indeed if we did have a revamped lending policy for homeowners to have large equity stakes in homes, we would have a much more stable housing market that in turn would also be more affordable.

    However the govt makes the rules to the game, and the game is rigged. Your points are valid and really cannot be argued against given the walkaway mindset in case of continued depreciation. I would go the FHA route.

    November 22, 2009 at 11:50 AM #485519
    SD Realtor
    Participant

    Scaredy the best thing you can do is run the numbers for both scenarios. This is something you can very easily do yourself. Talk to people offering conventional financing and FHA financing and see the difference in a few different scenarios. The primary difference will be in the closing costs and the monthly payment right?

    The thing that is troubling is that you are making an implication that you are simply wanting to buy because of financing opportunity. I understand that you feel like you are “missing out” and that is common. I am just not so sure it is the best reason to buy a home.

    I guess I would say that if you feel you have no obligation to pay a creditor then the answer is obvious and you should finance as much as possible. It is unfortunate that you feel that way but understandable. Your actions reenforce the ideas that indeed if we did have a revamped lending policy for homeowners to have large equity stakes in homes, we would have a much more stable housing market that in turn would also be more affordable.

    However the govt makes the rules to the game, and the game is rigged. Your points are valid and really cannot be argued against given the walkaway mindset in case of continued depreciation. I would go the FHA route.

    November 22, 2009 at 11:50 AM #485891
    SD Realtor
    Participant

    Scaredy the best thing you can do is run the numbers for both scenarios. This is something you can very easily do yourself. Talk to people offering conventional financing and FHA financing and see the difference in a few different scenarios. The primary difference will be in the closing costs and the monthly payment right?

    The thing that is troubling is that you are making an implication that you are simply wanting to buy because of financing opportunity. I understand that you feel like you are “missing out” and that is common. I am just not so sure it is the best reason to buy a home.

    I guess I would say that if you feel you have no obligation to pay a creditor then the answer is obvious and you should finance as much as possible. It is unfortunate that you feel that way but understandable. Your actions reenforce the ideas that indeed if we did have a revamped lending policy for homeowners to have large equity stakes in homes, we would have a much more stable housing market that in turn would also be more affordable.

    However the govt makes the rules to the game, and the game is rigged. Your points are valid and really cannot be argued against given the walkaway mindset in case of continued depreciation. I would go the FHA route.

    November 22, 2009 at 11:50 AM #485977
    SD Realtor
    Participant

    Scaredy the best thing you can do is run the numbers for both scenarios. This is something you can very easily do yourself. Talk to people offering conventional financing and FHA financing and see the difference in a few different scenarios. The primary difference will be in the closing costs and the monthly payment right?

    The thing that is troubling is that you are making an implication that you are simply wanting to buy because of financing opportunity. I understand that you feel like you are “missing out” and that is common. I am just not so sure it is the best reason to buy a home.

    I guess I would say that if you feel you have no obligation to pay a creditor then the answer is obvious and you should finance as much as possible. It is unfortunate that you feel that way but understandable. Your actions reenforce the ideas that indeed if we did have a revamped lending policy for homeowners to have large equity stakes in homes, we would have a much more stable housing market that in turn would also be more affordable.

    However the govt makes the rules to the game, and the game is rigged. Your points are valid and really cannot be argued against given the walkaway mindset in case of continued depreciation. I would go the FHA route.

    November 22, 2009 at 11:50 AM #486206
    SD Realtor
    Participant

    Scaredy the best thing you can do is run the numbers for both scenarios. This is something you can very easily do yourself. Talk to people offering conventional financing and FHA financing and see the difference in a few different scenarios. The primary difference will be in the closing costs and the monthly payment right?

    The thing that is troubling is that you are making an implication that you are simply wanting to buy because of financing opportunity. I understand that you feel like you are “missing out” and that is common. I am just not so sure it is the best reason to buy a home.

    I guess I would say that if you feel you have no obligation to pay a creditor then the answer is obvious and you should finance as much as possible. It is unfortunate that you feel that way but understandable. Your actions reenforce the ideas that indeed if we did have a revamped lending policy for homeowners to have large equity stakes in homes, we would have a much more stable housing market that in turn would also be more affordable.

    However the govt makes the rules to the game, and the game is rigged. Your points are valid and really cannot be argued against given the walkaway mindset in case of continued depreciation. I would go the FHA route.

    November 22, 2009 at 12:02 PM #485355
    NotCranky
    Participant

    Why not use FHA and buy something you would buy if it were indeed your own money at risk?You have the advantage of cheap leverage and a no brainer deal. I am pretty sure you are underestimating the stress and hassles of being in the position that some of these “When does it make sense to dump a house people are in”. Why not just go for near guaranteed success in the first place and be happy with it?

    November 22, 2009 at 12:02 PM #485524
    NotCranky
    Participant

    Why not use FHA and buy something you would buy if it were indeed your own money at risk?You have the advantage of cheap leverage and a no brainer deal. I am pretty sure you are underestimating the stress and hassles of being in the position that some of these “When does it make sense to dump a house people are in”. Why not just go for near guaranteed success in the first place and be happy with it?

    November 22, 2009 at 12:02 PM #485896
    NotCranky
    Participant

    Why not use FHA and buy something you would buy if it were indeed your own money at risk?You have the advantage of cheap leverage and a no brainer deal. I am pretty sure you are underestimating the stress and hassles of being in the position that some of these “When does it make sense to dump a house people are in”. Why not just go for near guaranteed success in the first place and be happy with it?

    November 22, 2009 at 12:02 PM #485982
    NotCranky
    Participant

    Why not use FHA and buy something you would buy if it were indeed your own money at risk?You have the advantage of cheap leverage and a no brainer deal. I am pretty sure you are underestimating the stress and hassles of being in the position that some of these “When does it make sense to dump a house people are in”. Why not just go for near guaranteed success in the first place and be happy with it?

    November 22, 2009 at 12:02 PM #486211
    NotCranky
    Participant

    Why not use FHA and buy something you would buy if it were indeed your own money at risk?You have the advantage of cheap leverage and a no brainer deal. I am pretty sure you are underestimating the stress and hassles of being in the position that some of these “When does it make sense to dump a house people are in”. Why not just go for near guaranteed success in the first place and be happy with it?

    November 22, 2009 at 12:13 PM #485360
    scaredyclassic
    Participant

    well, yeah, financing opportunity. if people are giving the money away, and the monthly payment is very cheap, then either prices will plummet in which case I’ll ditch the house, they’ll stay the same or plus or minus several hundred dollars int he payemnt, in which case we’ll stay, or they’ll shoot way up for some oddball reason, and I’ll win. How do i lose? it doesn’t seem stressful to me because I put nothing into it. I’d only be stressed if I were losing my 20% down.

    what would be stressful about deciding to dump a property that lost a lot of equity where i’m not paying the payment anyway? I’d be pleased. I’d be saving my monthly payment and getting ready to rent again which i’ve done my whole life anyway, no stigma for me. but unless the govt financing fha scam craters shortly, it will probably put the bottom under housing at that price range, right? give or take some…

    November 22, 2009 at 12:13 PM #485529
    scaredyclassic
    Participant

    well, yeah, financing opportunity. if people are giving the money away, and the monthly payment is very cheap, then either prices will plummet in which case I’ll ditch the house, they’ll stay the same or plus or minus several hundred dollars int he payemnt, in which case we’ll stay, or they’ll shoot way up for some oddball reason, and I’ll win. How do i lose? it doesn’t seem stressful to me because I put nothing into it. I’d only be stressed if I were losing my 20% down.

    what would be stressful about deciding to dump a property that lost a lot of equity where i’m not paying the payment anyway? I’d be pleased. I’d be saving my monthly payment and getting ready to rent again which i’ve done my whole life anyway, no stigma for me. but unless the govt financing fha scam craters shortly, it will probably put the bottom under housing at that price range, right? give or take some…

    November 22, 2009 at 12:13 PM #485901
    scaredyclassic
    Participant

    well, yeah, financing opportunity. if people are giving the money away, and the monthly payment is very cheap, then either prices will plummet in which case I’ll ditch the house, they’ll stay the same or plus or minus several hundred dollars int he payemnt, in which case we’ll stay, or they’ll shoot way up for some oddball reason, and I’ll win. How do i lose? it doesn’t seem stressful to me because I put nothing into it. I’d only be stressed if I were losing my 20% down.

    what would be stressful about deciding to dump a property that lost a lot of equity where i’m not paying the payment anyway? I’d be pleased. I’d be saving my monthly payment and getting ready to rent again which i’ve done my whole life anyway, no stigma for me. but unless the govt financing fha scam craters shortly, it will probably put the bottom under housing at that price range, right? give or take some…

    November 22, 2009 at 12:13 PM #485987
    scaredyclassic
    Participant

    well, yeah, financing opportunity. if people are giving the money away, and the monthly payment is very cheap, then either prices will plummet in which case I’ll ditch the house, they’ll stay the same or plus or minus several hundred dollars int he payemnt, in which case we’ll stay, or they’ll shoot way up for some oddball reason, and I’ll win. How do i lose? it doesn’t seem stressful to me because I put nothing into it. I’d only be stressed if I were losing my 20% down.

    what would be stressful about deciding to dump a property that lost a lot of equity where i’m not paying the payment anyway? I’d be pleased. I’d be saving my monthly payment and getting ready to rent again which i’ve done my whole life anyway, no stigma for me. but unless the govt financing fha scam craters shortly, it will probably put the bottom under housing at that price range, right? give or take some…

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