Horror Story

[SD Realtor]

IONEGARM the lenders are actually the ones overlaying the guidelines on top of the FHA. In fact FHA is understaffed like you said but the government does want more people to buy. Yet the government, (try as they might) cannot strongarm the lenders into making the loans. (at least not yet)

You are correct in the sense that the LENDERS are the ones pushing back and they are the ones ultimately originating and servicing the loans. Now on FHA loans the government actually insurers 25-35% of the loan and the lender does take the ultimate loss on the difference for a default. You are correct about the 620 min FICO overlay.

Also with regards to the spouses score. So the spouses credit score is checked BUT does not have bearing on the loan. HOWEVER if the spouse is carrying debt that debt will indeed be used for the qualifying ratios for the loan.

Also the 3.5% down payment CANNOT come from the seller. The seller can credit the buyer for closing costs. Alternately the 3.5% down can be gifted to the buyer but it does have to be from a relative.

This is my understanding and I am not a mortgage broker so feel free to correct me.

[IONEGARM]

[quote=SD Realtor]IONEGARM the lenders are actually the ones overlaying the guidelines on top of the FHA. [/quote]

Yep, its overlays from the lenders not FHA. FHA is tightening on cash out refis right now and has previously added in some buy N bail underwriting.

I think the 620 FICO min will hit the market hard when all lenders implement it (and they will).

I dont have a huge problem with 3.5% down as a buyer as long as its full doc and there is something significant coming from the buyers side. That prevents a lot of the games from being played.

[IONEGARM]

[quote=SD Realtor]IONEGARM the lenders are actually the ones overlaying the guidelines on top of the FHA. [/quote]

Yep, its overlays from the lenders not FHA. FHA is tightening on cash out refis right now and has previously added in some buy N bail underwriting.

I think the 620 FICO min will hit the market hard when all lenders implement it (and they will).

I dont have a huge problem with 3.5% down as a buyer as long as its full doc and there is something significant coming from the buyers side. That prevents a lot of the games from being played.

[IONEGARM]

[quote=SD Realtor]IONEGARM the lenders are actually the ones overlaying the guidelines on top of the FHA. [/quote]

Yep, its overlays from the lenders not FHA. FHA is tightening on cash out refis right now and has previously added in some buy N bail underwriting.

I think the 620 FICO min will hit the market hard when all lenders implement it (and they will).

I dont have a huge problem with 3.5% down as a buyer as long as its full doc and there is something significant coming from the buyers side. That prevents a lot of the games from being played.

[IONEGARM]

[quote=SD Realtor]IONEGARM the lenders are actually the ones overlaying the guidelines on top of the FHA. [/quote]

Yep, its overlays from the lenders not FHA. FHA is tightening on cash out refis right now and has previously added in some buy N bail underwriting.

I think the 620 FICO min will hit the market hard when all lenders implement it (and they will).

I dont have a huge problem with 3.5% down as a buyer as long as its full doc and there is something significant coming from the buyers side. That prevents a lot of the games from being played.

[IONEGARM]

[quote=SD Realtor]IONEGARM the lenders are actually the ones overlaying the guidelines on top of the FHA. [/quote]

Yep, its overlays from the lenders not FHA. FHA is tightening on cash out refis right now and has previously added in some buy N bail underwriting.

I think the 620 FICO min will hit the market hard when all lenders implement it (and they will).

I dont have a huge problem with 3.5% down as a buyer as long as its full doc and there is something significant coming from the buyers side. That prevents a lot of the games from being played.

[Diego Mamani]

IONEGARM, I didn’t mean to make a partisan post and blame the current administration. I agree that these practices predate Obama. My point is that his team is in charge now, and they have the power to do the right thing now.

SD-R, it appears that sellers and realtors in Ontario, San Bernardino, Riverside, etc., have found a way to transfer money to a third party (a “relative”) who then “gives” the money to the buyer.

Let’s look at the data… Would “gifts” be this common in the absence of this blatant government intervention? Gifts from relatives have always existed in RE, but the frequency of them today, especially in regards to FHA-guaranteed loans, is excessive. It can’t be real.

[Diego Mamani]

IONEGARM, I didn’t mean to make a partisan post and blame the current administration. I agree that these practices predate Obama. My point is that his team is in charge now, and they have the power to do the right thing now.

SD-R, it appears that sellers and realtors in Ontario, San Bernardino, Riverside, etc., have found a way to transfer money to a third party (a “relative”) who then “gives” the money to the buyer.

Let’s look at the data… Would “gifts” be this common in the absence of this blatant government intervention? Gifts from relatives have always existed in RE, but the frequency of them today, especially in regards to FHA-guaranteed loans, is excessive. It can’t be real.

[Diego Mamani]

IONEGARM, I didn’t mean to make a partisan post and blame the current administration. I agree that these practices predate Obama. My point is that his team is in charge now, and they have the power to do the right thing now.

SD-R, it appears that sellers and realtors in Ontario, San Bernardino, Riverside, etc., have found a way to transfer money to a third party (a “relative”) who then “gives” the money to the buyer.

Let’s look at the data… Would “gifts” be this common in the absence of this blatant government intervention? Gifts from relatives have always existed in RE, but the frequency of them today, especially in regards to FHA-guaranteed loans, is excessive. It can’t be real.

[Diego Mamani]

IONEGARM, I didn’t mean to make a partisan post and blame the current administration. I agree that these practices predate Obama. My point is that his team is in charge now, and they have the power to do the right thing now.

SD-R, it appears that sellers and realtors in Ontario, San Bernardino, Riverside, etc., have found a way to transfer money to a third party (a “relative”) who then “gives” the money to the buyer.

Let’s look at the data… Would “gifts” be this common in the absence of this blatant government intervention? Gifts from relatives have always existed in RE, but the frequency of them today, especially in regards to FHA-guaranteed loans, is excessive. It can’t be real.

[Diego Mamani]

IONEGARM, I didn’t mean to make a partisan post and blame the current administration. I agree that these practices predate Obama. My point is that his team is in charge now, and they have the power to do the right thing now.

SD-R, it appears that sellers and realtors in Ontario, San Bernardino, Riverside, etc., have found a way to transfer money to a third party (a “relative”) who then “gives” the money to the buyer.

Let’s look at the data… Would “gifts” be this common in the absence of this blatant government intervention? Gifts from relatives have always existed in RE, but the frequency of them today, especially in regards to FHA-guaranteed loans, is excessive. It can’t be real.

[peterb]

It’s kind of funny, but I was talking to a couple of friends who’ve never had much money and always wanted a house. Now that there’s 3% down and a much higher limit, they both are going to buy a house. When I told them of the horrible fundementals, they both said, “At 3% down, if the crap hits the fan, we just stay in it until they evict us.”

So here’s the future speaking. I give them 18 months, tops.

[peterb]

It’s kind of funny, but I was talking to a couple of friends who’ve never had much money and always wanted a house. Now that there’s 3% down and a much higher limit, they both are going to buy a house. When I told them of the horrible fundementals, they both said, “At 3% down, if the crap hits the fan, we just stay in it until they evict us.”

So here’s the future speaking. I give them 18 months, tops.

[peterb]

It’s kind of funny, but I was talking to a couple of friends who’ve never had much money and always wanted a house. Now that there’s 3% down and a much higher limit, they both are going to buy a house. When I told them of the horrible fundementals, they both said, “At 3% down, if the crap hits the fan, we just stay in it until they evict us.”

So here’s the future speaking. I give them 18 months, tops.

[peterb]

It’s kind of funny, but I was talking to a couple of friends who’ve never had much money and always wanted a house. Now that there’s 3% down and a much higher limit, they both are going to buy a house. When I told them of the horrible fundementals, they both said, “At 3% down, if the crap hits the fan, we just stay in it until they evict us.”

So here’s the future speaking. I give them 18 months, tops.

[Author]

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