looks like the stage is set

[kev374]

The Conforming limit for FHA will remain at $417,000 for year 2008. This is the death knell for the market here is California.

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-21255228.htm

[mgubnyc1]

Ouch! Yep, but the truth is most people taking 400k mortgages can’t even afford them anyway. A 400K 30year fixed at 6% mortgage and 12K property tax’s cost like 3500 a month and that’s just your house payment, so many of these people have BMW car payments, RV payments line of credit and credit card payments, why give someone a 400K mortgage they can’t afford.
Someone deserving of a 400K mortgage should have a minimum income of 225K Gross to qualify. (IMO)

[SD Realtor]

This is very good news.

SD Realtor

[SD Realtor]

This is very good news.

SD Realtor

[SD Realtor]

This is very good news.

SD Realtor

[SD Realtor]

This is very good news.

SD Realtor

[SD Realtor]

This is very good news.

SD Realtor

[markzuber]

Property tax cost on 400K should be about 4.5K or about $367 monthly. 30 Year Fixed Mortgage on 400k should be about $2,400 monthly. So, the total house payment will be $367 + $2,400 = $2,767.

Did I miss something here?

[mgubnyc1]

Yes! I’m assuming the purchase price to be somewhere around 550K to 650K with a 20% to 25% deposit!
Who is going to give 400K mortgages on a house that is only worth 400K????

[Raybyrnes]

Most lenders will still provide up to 97% financing if you are going through the Federal program because of the fact that the loans are government guaranteed. There are down payment assistance programs that can cover the additional 3% so availability to money is still there. You just have to look a little bit harder for it.

There are also state run programs. http://www.calhfa.ca.gov

[mgubnyc1]

Maybe so, there are suckers still out there, but you won’t be anywhere near a 6% rate. Further to this, anyone taking a 400K loan today on a house that will be worth 300K in a year from now is an idiot and the dumb ass mortgage company that issues the loan should be shut down.

[mgubnyc1]

Maybe so, there are suckers still out there, but you won’t be anywhere near a 6% rate. Further to this, anyone taking a 400K loan today on a house that will be worth 300K in a year from now is an idiot and the dumb ass mortgage company that issues the loan should be shut down.

[mgubnyc1]

Maybe so, there are suckers still out there, but you won’t be anywhere near a 6% rate. Further to this, anyone taking a 400K loan today on a house that will be worth 300K in a year from now is an idiot and the dumb ass mortgage company that issues the loan should be shut down.

[mgubnyc1]

Maybe so, there are suckers still out there, but you won’t be anywhere near a 6% rate. Further to this, anyone taking a 400K loan today on a house that will be worth 300K in a year from now is an idiot and the dumb ass mortgage company that issues the loan should be shut down.

[mgubnyc1]

Maybe so, there are suckers still out there, but you won’t be anywhere near a 6% rate. Further to this, anyone taking a 400K loan today on a house that will be worth 300K in a year from now is an idiot and the dumb ass mortgage company that issues the loan should be shut down.

[Raybyrnes]

Most lenders will still provide up to 97% financing if you are going through the Federal program because of the fact that the loans are government guaranteed. There are down payment assistance programs that can cover the additional 3% so availability to money is still there. You just have to look a little bit harder for it.

There are also state run programs. http://www.calhfa.ca.gov

[Raybyrnes]

Most lenders will still provide up to 97% financing if you are going through the Federal program because of the fact that the loans are government guaranteed. There are down payment assistance programs that can cover the additional 3% so availability to money is still there. You just have to look a little bit harder for it.

There are also state run programs. http://www.calhfa.ca.gov

[Raybyrnes]

Most lenders will still provide up to 97% financing if you are going through the Federal program because of the fact that the loans are government guaranteed. There are down payment assistance programs that can cover the additional 3% so availability to money is still there. You just have to look a little bit harder for it.

There are also state run programs. http://www.calhfa.ca.gov

[Raybyrnes]

Most lenders will still provide up to 97% financing if you are going through the Federal program because of the fact that the loans are government guaranteed. There are down payment assistance programs that can cover the additional 3% so availability to money is still there. You just have to look a little bit harder for it.

There are also state run programs. http://www.calhfa.ca.gov

[mgubnyc1]

Yes! I’m assuming the purchase price to be somewhere around 550K to 650K with a 20% to 25% deposit!
Who is going to give 400K mortgages on a house that is only worth 400K????

[mgubnyc1]

Yes! I’m assuming the purchase price to be somewhere around 550K to 650K with a 20% to 25% deposit!
Who is going to give 400K mortgages on a house that is only worth 400K????

[mgubnyc1]

Yes! I’m assuming the purchase price to be somewhere around 550K to 650K with a 20% to 25% deposit!
Who is going to give 400K mortgages on a house that is only worth 400K????

[mgubnyc1]

Yes! I’m assuming the purchase price to be somewhere around 550K to 650K with a 20% to 25% deposit!
Who is going to give 400K mortgages on a house that is only worth 400K????

[markzuber]

Property tax cost on 400K should be about 4.5K or about $367 monthly. 30 Year Fixed Mortgage on 400k should be about $2,400 monthly. So, the total house payment will be $367 + $2,400 = $2,767.

Did I miss something here?

[markzuber]

Property tax cost on 400K should be about 4.5K or about $367 monthly. 30 Year Fixed Mortgage on 400k should be about $2,400 monthly. So, the total house payment will be $367 + $2,400 = $2,767.

Did I miss something here?

[markzuber]

Property tax cost on 400K should be about 4.5K or about $367 monthly. 30 Year Fixed Mortgage on 400k should be about $2,400 monthly. So, the total house payment will be $367 + $2,400 = $2,767.

Did I miss something here?

[markzuber]

Property tax cost on 400K should be about 4.5K or about $367 monthly. 30 Year Fixed Mortgage on 400k should be about $2,400 monthly. So, the total house payment will be $367 + $2,400 = $2,767.

Did I miss something here?

[mgubnyc1]

Ouch! Yep, but the truth is most people taking 400k mortgages can’t even afford them anyway. A 400K 30year fixed at 6% mortgage and 12K property tax’s cost like 3500 a month and that’s just your house payment, so many of these people have BMW car payments, RV payments line of credit and credit card payments, why give someone a 400K mortgage they can’t afford.
Someone deserving of a 400K mortgage should have a minimum income of 225K Gross to qualify. (IMO)

[mgubnyc1]

Ouch! Yep, but the truth is most people taking 400k mortgages can’t even afford them anyway. A 400K 30year fixed at 6% mortgage and 12K property tax’s cost like 3500 a month and that’s just your house payment, so many of these people have BMW car payments, RV payments line of credit and credit card payments, why give someone a 400K mortgage they can’t afford.
Someone deserving of a 400K mortgage should have a minimum income of 225K Gross to qualify. (IMO)

[mgubnyc1]

Ouch! Yep, but the truth is most people taking 400k mortgages can’t even afford them anyway. A 400K 30year fixed at 6% mortgage and 12K property tax’s cost like 3500 a month and that’s just your house payment, so many of these people have BMW car payments, RV payments line of credit and credit card payments, why give someone a 400K mortgage they can’t afford.
Someone deserving of a 400K mortgage should have a minimum income of 225K Gross to qualify. (IMO)

[mgubnyc1]

Ouch! Yep, but the truth is most people taking 400k mortgages can’t even afford them anyway. A 400K 30year fixed at 6% mortgage and 12K property tax’s cost like 3500 a month and that’s just your house payment, so many of these people have BMW car payments, RV payments line of credit and credit card payments, why give someone a 400K mortgage they can’t afford.
Someone deserving of a 400K mortgage should have a minimum income of 225K Gross to qualify. (IMO)

[Raybyrnes]

kev374

I’m missing somthing. The way I understand the program, the limits should have adjusted downward to reflect the declining costs. By leaving the limits unchanged they are actually helping more borrowers who are potentially on the edge. Additonally this expands the pool of potential buyers. I would think that this slows the housing correction rather than accelerating it.

[mgubnyc1]

Its going to take much more then this to slow this housing correction, were just picking up momentum, 2007 has has already hit 10% declines in many parts of CA,AZ,NV,IL and FL
IMO you will see another 10% drop in these states in the 1st half of 2008.
Then maybe start to slow.

[Tone]

Can Congress, in their zeal to prop up housing, over-ride the federal regulator and force the FHA to increase the limit?

[mgubnyc1]

That won’t matter, bottom line is unless you have the ability to repay you won’t get a loan.

[mgubnyc1]

That won’t matter, bottom line is unless you have the ability to repay you won’t get a loan.

[mgubnyc1]

That won’t matter, bottom line is unless you have the ability to repay you won’t get a loan.

[mgubnyc1]

That won’t matter, bottom line is unless you have the ability to repay you won’t get a loan.

[mgubnyc1]

That won’t matter, bottom line is unless you have the ability to repay you won’t get a loan.

[Tone]

Can Congress, in their zeal to prop up housing, over-ride the federal regulator and force the FHA to increase the limit?

[Tone]

Can Congress, in their zeal to prop up housing, over-ride the federal regulator and force the FHA to increase the limit?

[Tone]

Can Congress, in their zeal to prop up housing, over-ride the federal regulator and force the FHA to increase the limit?

[Tone]

Can Congress, in their zeal to prop up housing, over-ride the federal regulator and force the FHA to increase the limit?

[mgubnyc1]

Its going to take much more then this to slow this housing correction, were just picking up momentum, 2007 has has already hit 10% declines in many parts of CA,AZ,NV,IL and FL
IMO you will see another 10% drop in these states in the 1st half of 2008.
Then maybe start to slow.

[mgubnyc1]

Its going to take much more then this to slow this housing correction, were just picking up momentum, 2007 has has already hit 10% declines in many parts of CA,AZ,NV,IL and FL
IMO you will see another 10% drop in these states in the 1st half of 2008.
Then maybe start to slow.

[mgubnyc1]

Its going to take much more then this to slow this housing correction, were just picking up momentum, 2007 has has already hit 10% declines in many parts of CA,AZ,NV,IL and FL
IMO you will see another 10% drop in these states in the 1st half of 2008.
Then maybe start to slow.

[mgubnyc1]

Its going to take much more then this to slow this housing correction, were just picking up momentum, 2007 has has already hit 10% declines in many parts of CA,AZ,NV,IL and FL
IMO you will see another 10% drop in these states in the 1st half of 2008.
Then maybe start to slow.

[Raybyrnes]

kev374

I’m missing somthing. The way I understand the program, the limits should have adjusted downward to reflect the declining costs. By leaving the limits unchanged they are actually helping more borrowers who are potentially on the edge. Additonally this expands the pool of potential buyers. I would think that this slows the housing correction rather than accelerating it.

[Raybyrnes]

kev374

I’m missing somthing. The way I understand the program, the limits should have adjusted downward to reflect the declining costs. By leaving the limits unchanged they are actually helping more borrowers who are potentially on the edge. Additonally this expands the pool of potential buyers. I would think that this slows the housing correction rather than accelerating it.

[Raybyrnes]

kev374

I’m missing somthing. The way I understand the program, the limits should have adjusted downward to reflect the declining costs. By leaving the limits unchanged they are actually helping more borrowers who are potentially on the edge. Additonally this expands the pool of potential buyers. I would think that this slows the housing correction rather than accelerating it.

[Raybyrnes]

kev374

I’m missing somthing. The way I understand the program, the limits should have adjusted downward to reflect the declining costs. By leaving the limits unchanged they are actually helping more borrowers who are potentially on the edge. Additonally this expands the pool of potential buyers. I would think that this slows the housing correction rather than accelerating it.

[Author]

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