FHA Mortgage Insurance Premiums may triple

[garysears]

I think this effectively raises the interest rate on all FHA loans by 1.5%. How is raising the minimum down payment not better? Raising the minimum down payment would save more money in the long run (if that is the goal, but I’m not sure what the real goal is here).

I wonder if the 3.5% down buyers will be quicker to walk on an underwater house when they see that extra 4k per year extra down the drain for the foreseeable future.

I think if enacted this changes the rent/buy numbers significantly for the marginal crowd (if anyone does numbers).

[HLS]

Way too simple to say that it adds 1.5% to the rate. It makes a 5% loan a 7% loan. It varies with the rate.
***************
what is the purpose of obtaining an FHA loan if the MMI is so exorbitant that it adds several hundred dollars a month onto the mtg. payment without loaning any more money?
What happened to paying the MMI premium up front??
*****
FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity.

It appears that the new proposal is to pay it for 30 years if you buy with less than 10% down OR 11 years with 10% down. (the proposal is absurd)

The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.

F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.

The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”

If FHA didn’t exist, housing prices would be lower.

[HLS]

Way too simple to say that it adds 1.5% to the rate. It makes a 5% loan a 7% loan. It varies with the rate.
***************
what is the purpose of obtaining an FHA loan if the MMI is so exorbitant that it adds several hundred dollars a month onto the mtg. payment without loaning any more money?
What happened to paying the MMI premium up front??
*****
FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity.

It appears that the new proposal is to pay it for 30 years if you buy with less than 10% down OR 11 years with 10% down. (the proposal is absurd)

The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.

F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.

The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”

If FHA didn’t exist, housing prices would be lower.

[HLS]

Way too simple to say that it adds 1.5% to the rate. It makes a 5% loan a 7% loan. It varies with the rate.
***************
what is the purpose of obtaining an FHA loan if the MMI is so exorbitant that it adds several hundred dollars a month onto the mtg. payment without loaning any more money?
What happened to paying the MMI premium up front??
*****
FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity.

It appears that the new proposal is to pay it for 30 years if you buy with less than 10% down OR 11 years with 10% down. (the proposal is absurd)

The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.

F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.

The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”

If FHA didn’t exist, housing prices would be lower.

[HLS]

Way too simple to say that it adds 1.5% to the rate. It makes a 5% loan a 7% loan. It varies with the rate.
***************
what is the purpose of obtaining an FHA loan if the MMI is so exorbitant that it adds several hundred dollars a month onto the mtg. payment without loaning any more money?
What happened to paying the MMI premium up front??
*****
FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity.

It appears that the new proposal is to pay it for 30 years if you buy with less than 10% down OR 11 years with 10% down. (the proposal is absurd)

The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.

F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.

The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”

If FHA didn’t exist, housing prices would be lower.

[HLS]

Way too simple to say that it adds 1.5% to the rate. It makes a 5% loan a 7% loan. It varies with the rate.
***************
what is the purpose of obtaining an FHA loan if the MMI is so exorbitant that it adds several hundred dollars a month onto the mtg. payment without loaning any more money?
What happened to paying the MMI premium up front??
*****
FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity.

It appears that the new proposal is to pay it for 30 years if you buy with less than 10% down OR 11 years with 10% down. (the proposal is absurd)

The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.

F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.

The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”

If FHA didn’t exist, housing prices would be lower.

[bearishgurl]

[quote=HLS]. . . FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity . . .

The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.

F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.

The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”

If FHA didn’t exist, housing prices would be lower.[/quote]

Thanks, HLS, I didn’t realize FHA accepted low credit scores. I guess since there’s no “subprime” market anymore and FHA’s loan limit is so high, these bad risks can now use FHA.

I still don’t understand how borrowers think paying the MMI (and “funding fee,” if applic.) is a good deal.

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??

The FHA program rules are defeating the apparent “movement” to get solvent borrowers in properties who will not be “underwater” again a minute and a half after escrow closes.

It’s just mind boggling!!

[bearishgurl]

[quote=HLS]. . . FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity . . .

The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.

F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.

The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”

If FHA didn’t exist, housing prices would be lower.[/quote]

Thanks, HLS, I didn’t realize FHA accepted low credit scores. I guess since there’s no “subprime” market anymore and FHA’s loan limit is so high, these bad risks can now use FHA.

I still don’t understand how borrowers think paying the MMI (and “funding fee,” if applic.) is a good deal.

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??

The FHA program rules are defeating the apparent “movement” to get solvent borrowers in properties who will not be “underwater” again a minute and a half after escrow closes.

It’s just mind boggling!!

[bearishgurl]

[quote=HLS]. . . FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity . . .

The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.

F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.

The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”

If FHA didn’t exist, housing prices would be lower.[/quote]

Thanks, HLS, I didn’t realize FHA accepted low credit scores. I guess since there’s no “subprime” market anymore and FHA’s loan limit is so high, these bad risks can now use FHA.

I still don’t understand how borrowers think paying the MMI (and “funding fee,” if applic.) is a good deal.

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??

The FHA program rules are defeating the apparent “movement” to get solvent borrowers in properties who will not be “underwater” again a minute and a half after escrow closes.

It’s just mind boggling!!

[bearishgurl]

[quote=HLS]. . . FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity . . .

The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.

F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.

The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”

If FHA didn’t exist, housing prices would be lower.[/quote]

Thanks, HLS, I didn’t realize FHA accepted low credit scores. I guess since there’s no “subprime” market anymore and FHA’s loan limit is so high, these bad risks can now use FHA.

I still don’t understand how borrowers think paying the MMI (and “funding fee,” if applic.) is a good deal.

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??

The FHA program rules are defeating the apparent “movement” to get solvent borrowers in properties who will not be “underwater” again a minute and a half after escrow closes.

It’s just mind boggling!!

[bearishgurl]

[quote=HLS]. . . FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity . . .

The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.

F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.

The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”

If FHA didn’t exist, housing prices would be lower.[/quote]

Thanks, HLS, I didn’t realize FHA accepted low credit scores. I guess since there’s no “subprime” market anymore and FHA’s loan limit is so high, these bad risks can now use FHA.

I still don’t understand how borrowers think paying the MMI (and “funding fee,” if applic.) is a good deal.

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??

The FHA program rules are defeating the apparent “movement” to get solvent borrowers in properties who will not be “underwater” again a minute and a half after escrow closes.

It’s just mind boggling!!

[HLS]

We aren’t dealing with too many people who think.
FHA is the new subprime. Without it, the houisng market would collapse.

We are dealing with a society that has an entitlement attitude and thinks that their civil rights are violated if they can’t get a mortgage.
Greed and foolishness is rampant. People think they are looked down upon if they are a renter.

The wise ones have been renters the last 5-6 years and have no money in the stock market. How UNAmerican is that ?

The recent move to “address risk” at FHA was if a credit score is below 580, you need 10% down. Above 580 3.50% down is still possible, and the seller can only contribute 3% of the sales price instead of 6%.
This is a very, very, sick situation.

http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016

[HLS]

We aren’t dealing with too many people who think.
FHA is the new subprime. Without it, the houisng market would collapse.

We are dealing with a society that has an entitlement attitude and thinks that their civil rights are violated if they can’t get a mortgage.
Greed and foolishness is rampant. People think they are looked down upon if they are a renter.

The wise ones have been renters the last 5-6 years and have no money in the stock market. How UNAmerican is that ?

The recent move to “address risk” at FHA was if a credit score is below 580, you need 10% down. Above 580 3.50% down is still possible, and the seller can only contribute 3% of the sales price instead of 6%.
This is a very, very, sick situation.

http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016

[HLS]

We aren’t dealing with too many people who think.
FHA is the new subprime. Without it, the houisng market would collapse.

We are dealing with a society that has an entitlement attitude and thinks that their civil rights are violated if they can’t get a mortgage.
Greed and foolishness is rampant. People think they are looked down upon if they are a renter.

The wise ones have been renters the last 5-6 years and have no money in the stock market. How UNAmerican is that ?

The recent move to “address risk” at FHA was if a credit score is below 580, you need 10% down. Above 580 3.50% down is still possible, and the seller can only contribute 3% of the sales price instead of 6%.
This is a very, very, sick situation.

http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016

[HLS]

We aren’t dealing with too many people who think.
FHA is the new subprime. Without it, the houisng market would collapse.

We are dealing with a society that has an entitlement attitude and thinks that their civil rights are violated if they can’t get a mortgage.
Greed and foolishness is rampant. People think they are looked down upon if they are a renter.

The wise ones have been renters the last 5-6 years and have no money in the stock market. How UNAmerican is that ?

The recent move to “address risk” at FHA was if a credit score is below 580, you need 10% down. Above 580 3.50% down is still possible, and the seller can only contribute 3% of the sales price instead of 6%.
This is a very, very, sick situation.

http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016

[Author]

Posts