Mortgage Loan approval hell

[sdrealtor]

There are people in this world far more upwardly mobile who want and have the motivation to make it happen but should not be subjected to those standards which are perfectly fine for people in other more stable situations. A blue collar worker or gov’t worker who does not have nearly certain higher income coming should meet those standards. A highly specialized physician who has sacrificed spending 4 yrs in college, 4 years in med school, a year in residency and then a few more in fellowship comes out with much educational debt but a mid 6 figure income. These people often have young families and have lived with sacrifices far beyond what you have made. Their time has come and there should be mortgage loans for them. If I was in the position making residential RE loans I would much rather lend to one of them than a minimally employed paralegal putting 30% but thats just me.

[bearishgurl]

[quote=ctr70]…FHA and VA have never had super high default rates. So it’s a myth that real estate “used to be” 20% down back in the day or it needs to be 20% down. FHA has never been 20% down and it’s been around since 1934…[/quote]

ctr70, I beg to differ with your opinion on past FHA and VA loan problems. Throughout the 80’s, both agencies took out a quarter page ad biweekly in the San Diego (morning) Union for their long lists of 1-4 unit properties they had recently taken back and were accepting sealed bids on in San Diego County. Not only was I authorized to show and write bids on VA-acquired properties, I purchased a couple of them myself. These agencies’ local property mgrs did not clean the properties, except to remove any perishable food and dead pets. Their main function was to issue lockbox keys to approved agents and accept and transfer sealed bids. There were no utilities on or running water in the properties while marketed. Many needed up to 12 trips to the dump first in order to be habitable.

Between 1982-1983, the FHA interest rate was approx 15.5%. Many FHA buyers in this era defaulted on <$80K loans. For the most part, the VA and FHA buyers of these properties who defaulted with 0-3.5% "skin" in the game had no business being homeowners in the first place, due to the way they DIDN'T maintain the properties. Many properties were also "stripped" of fixtures by the defaulting trustor, had clogged plumbing (due to squatters after becoming vacant), and had structural problems (often due to the defaulting trustor driving thru the back of the garage, or through the garage door). If these agencies couldn't get their defaulted amount in a sealed bid, then they would accept less than the defaulted amount. Bidders with substantial downpayments always "won" over bidders without or who asked the agency (VA or FHA) to finance the property for them on their own "terms." The agencies would gladly offer low-down "terms" on properties which had structural damage. FHA and VA closing fees are much too expensive, their rates are often not competitive. The demographic who typically uses these types of mortgages are least able to pay the up-front points due to seller reluctance (VA), exorbitant montly MMI (FHA) and/or higher interest rates. There is much cheaper money out there, IMO.

[bearishgurl]

[quote=ctr70]…FHA and VA have never had super high default rates. So it’s a myth that real estate “used to be” 20% down back in the day or it needs to be 20% down. FHA has never been 20% down and it’s been around since 1934…[/quote]

ctr70, I beg to differ with your opinion on past FHA and VA loan problems. Throughout the 80’s, both agencies took out a quarter page ad biweekly in the San Diego (morning) Union for their long lists of 1-4 unit properties they had recently taken back and were accepting sealed bids on in San Diego County. Not only was I authorized to show and write bids on VA-acquired properties, I purchased a couple of them myself. These agencies’ local property mgrs did not clean the properties, except to remove any perishable food and dead pets. Their main function was to issue lockbox keys to approved agents and accept and transfer sealed bids. There were no utilities on or running water in the properties while marketed. Many needed up to 12 trips to the dump first in order to be habitable.

Between 1982-1983, the FHA interest rate was approx 15.5%. Many FHA buyers in this era defaulted on <$80K loans. For the most part, the VA and FHA buyers of these properties who defaulted with 0-3.5% "skin" in the game had no business being homeowners in the first place, due to the way they DIDN'T maintain the properties. Many properties were also "stripped" of fixtures by the defaulting trustor, had clogged plumbing (due to squatters after becoming vacant), and had structural problems (often due to the defaulting trustor driving thru the back of the garage, or through the garage door). If these agencies couldn't get their defaulted amount in a sealed bid, then they would accept less than the defaulted amount. Bidders with substantial downpayments always "won" over bidders without or who asked the agency (VA or FHA) to finance the property for them on their own "terms." The agencies would gladly offer low-down "terms" on properties which had structural damage. FHA and VA closing fees are much too expensive, their rates are often not competitive. The demographic who typically uses these types of mortgages are least able to pay the up-front points due to seller reluctance (VA), exorbitant montly MMI (FHA) and/or higher interest rates. There is much cheaper money out there, IMO.

[bearishgurl]

[quote=ctr70]…FHA and VA have never had super high default rates. So it’s a myth that real estate “used to be” 20% down back in the day or it needs to be 20% down. FHA has never been 20% down and it’s been around since 1934…[/quote]

ctr70, I beg to differ with your opinion on past FHA and VA loan problems. Throughout the 80’s, both agencies took out a quarter page ad biweekly in the San Diego (morning) Union for their long lists of 1-4 unit properties they had recently taken back and were accepting sealed bids on in San Diego County. Not only was I authorized to show and write bids on VA-acquired properties, I purchased a couple of them myself. These agencies’ local property mgrs did not clean the properties, except to remove any perishable food and dead pets. Their main function was to issue lockbox keys to approved agents and accept and transfer sealed bids. There were no utilities on or running water in the properties while marketed. Many needed up to 12 trips to the dump first in order to be habitable.

Between 1982-1983, the FHA interest rate was approx 15.5%. Many FHA buyers in this era defaulted on <$80K loans. For the most part, the VA and FHA buyers of these properties who defaulted with 0-3.5% "skin" in the game had no business being homeowners in the first place, due to the way they DIDN'T maintain the properties. Many properties were also "stripped" of fixtures by the defaulting trustor, had clogged plumbing (due to squatters after becoming vacant), and had structural problems (often due to the defaulting trustor driving thru the back of the garage, or through the garage door). If these agencies couldn't get their defaulted amount in a sealed bid, then they would accept less than the defaulted amount. Bidders with substantial downpayments always "won" over bidders without or who asked the agency (VA or FHA) to finance the property for them on their own "terms." The agencies would gladly offer low-down "terms" on properties which had structural damage. FHA and VA closing fees are much too expensive, their rates are often not competitive. The demographic who typically uses these types of mortgages are least able to pay the up-front points due to seller reluctance (VA), exorbitant montly MMI (FHA) and/or higher interest rates. There is much cheaper money out there, IMO.

[bearishgurl]

[quote=ctr70]…FHA and VA have never had super high default rates. So it’s a myth that real estate “used to be” 20% down back in the day or it needs to be 20% down. FHA has never been 20% down and it’s been around since 1934…[/quote]

ctr70, I beg to differ with your opinion on past FHA and VA loan problems. Throughout the 80’s, both agencies took out a quarter page ad biweekly in the San Diego (morning) Union for their long lists of 1-4 unit properties they had recently taken back and were accepting sealed bids on in San Diego County. Not only was I authorized to show and write bids on VA-acquired properties, I purchased a couple of them myself. These agencies’ local property mgrs did not clean the properties, except to remove any perishable food and dead pets. Their main function was to issue lockbox keys to approved agents and accept and transfer sealed bids. There were no utilities on or running water in the properties while marketed. Many needed up to 12 trips to the dump first in order to be habitable.

Between 1982-1983, the FHA interest rate was approx 15.5%. Many FHA buyers in this era defaulted on <$80K loans. For the most part, the VA and FHA buyers of these properties who defaulted with 0-3.5% "skin" in the game had no business being homeowners in the first place, due to the way they DIDN'T maintain the properties. Many properties were also "stripped" of fixtures by the defaulting trustor, had clogged plumbing (due to squatters after becoming vacant), and had structural problems (often due to the defaulting trustor driving thru the back of the garage, or through the garage door). If these agencies couldn't get their defaulted amount in a sealed bid, then they would accept less than the defaulted amount. Bidders with substantial downpayments always "won" over bidders without or who asked the agency (VA or FHA) to finance the property for them on their own "terms." The agencies would gladly offer low-down "terms" on properties which had structural damage. FHA and VA closing fees are much too expensive, their rates are often not competitive. The demographic who typically uses these types of mortgages are least able to pay the up-front points due to seller reluctance (VA), exorbitant montly MMI (FHA) and/or higher interest rates. There is much cheaper money out there, IMO.

[bearishgurl]

[quote=ctr70]…FHA and VA have never had super high default rates. So it’s a myth that real estate “used to be” 20% down back in the day or it needs to be 20% down. FHA has never been 20% down and it’s been around since 1934…[/quote]

ctr70, I beg to differ with your opinion on past FHA and VA loan problems. Throughout the 80’s, both agencies took out a quarter page ad biweekly in the San Diego (morning) Union for their long lists of 1-4 unit properties they had recently taken back and were accepting sealed bids on in San Diego County. Not only was I authorized to show and write bids on VA-acquired properties, I purchased a couple of them myself. These agencies’ local property mgrs did not clean the properties, except to remove any perishable food and dead pets. Their main function was to issue lockbox keys to approved agents and accept and transfer sealed bids. There were no utilities on or running water in the properties while marketed. Many needed up to 12 trips to the dump first in order to be habitable.

Between 1982-1983, the FHA interest rate was approx 15.5%. Many FHA buyers in this era defaulted on <$80K loans. For the most part, the VA and FHA buyers of these properties who defaulted with 0-3.5% "skin" in the game had no business being homeowners in the first place, due to the way they DIDN'T maintain the properties. Many properties were also "stripped" of fixtures by the defaulting trustor, had clogged plumbing (due to squatters after becoming vacant), and had structural problems (often due to the defaulting trustor driving thru the back of the garage, or through the garage door). If these agencies couldn't get their defaulted amount in a sealed bid, then they would accept less than the defaulted amount. Bidders with substantial downpayments always "won" over bidders without or who asked the agency (VA or FHA) to finance the property for them on their own "terms." The agencies would gladly offer low-down "terms" on properties which had structural damage. FHA and VA closing fees are much too expensive, their rates are often not competitive. The demographic who typically uses these types of mortgages are least able to pay the up-front points due to seller reluctance (VA), exorbitant montly MMI (FHA) and/or higher interest rates. There is much cheaper money out there, IMO.

[bearishgurl]

[quote=sdrealtor]There are people in this world far more upwardly mobile who want and have the motivation to make it happen but should not be subjected to those standards which are perfectly fine for people in other more stable situations. A blue collar worker or gov’t worker who does not have nearly certain higher income coming should meet those standards. A highly specialized physician who has sacrificed spending 4 yrs in college, 4 years in med school, a year in residency and then a few more in fellowship comes out with much educational debt but a mid 6 figure income. These people often have young families and have lived with sacrifices far beyond what you have made. Their time has come and there should be mortgage loans for them. If I was in the position making residential RE loans I would much rather lend to one of them than a minimally employed paralegal putting 30% but thats just me.[/quote]

I hope all your residential lending forays are successful and profitable, sdr! Anyone with large student loans and the inability to pay them down or pay them off is a “red flag” to me. Often, this indicates they overspent while attending school.

You shouldn’t be judging the degree of another Pigg’s “employment status” that you know nothing about. You post enough around here on a regular workday for many Piggs to surmise you have absolutely nothing better to do ;=)

You would fare better here to keep your opinions (not based upon any facts or percipient knowledge) as to another Pigg’s “employment status” to yourself. The Piggs are more than tired of having to constantly come across your little arrogant jabs.

[bearishgurl]

[quote=sdrealtor]There are people in this world far more upwardly mobile who want and have the motivation to make it happen but should not be subjected to those standards which are perfectly fine for people in other more stable situations. A blue collar worker or gov’t worker who does not have nearly certain higher income coming should meet those standards. A highly specialized physician who has sacrificed spending 4 yrs in college, 4 years in med school, a year in residency and then a few more in fellowship comes out with much educational debt but a mid 6 figure income. These people often have young families and have lived with sacrifices far beyond what you have made. Their time has come and there should be mortgage loans for them. If I was in the position making residential RE loans I would much rather lend to one of them than a minimally employed paralegal putting 30% but thats just me.[/quote]

I hope all your residential lending forays are successful and profitable, sdr! Anyone with large student loans and the inability to pay them down or pay them off is a “red flag” to me. Often, this indicates they overspent while attending school.

You shouldn’t be judging the degree of another Pigg’s “employment status” that you know nothing about. You post enough around here on a regular workday for many Piggs to surmise you have absolutely nothing better to do ;=)

You would fare better here to keep your opinions (not based upon any facts or percipient knowledge) as to another Pigg’s “employment status” to yourself. The Piggs are more than tired of having to constantly come across your little arrogant jabs.

[bearishgurl]

[quote=sdrealtor]There are people in this world far more upwardly mobile who want and have the motivation to make it happen but should not be subjected to those standards which are perfectly fine for people in other more stable situations. A blue collar worker or gov’t worker who does not have nearly certain higher income coming should meet those standards. A highly specialized physician who has sacrificed spending 4 yrs in college, 4 years in med school, a year in residency and then a few more in fellowship comes out with much educational debt but a mid 6 figure income. These people often have young families and have lived with sacrifices far beyond what you have made. Their time has come and there should be mortgage loans for them. If I was in the position making residential RE loans I would much rather lend to one of them than a minimally employed paralegal putting 30% but thats just me.[/quote]

I hope all your residential lending forays are successful and profitable, sdr! Anyone with large student loans and the inability to pay them down or pay them off is a “red flag” to me. Often, this indicates they overspent while attending school.

You shouldn’t be judging the degree of another Pigg’s “employment status” that you know nothing about. You post enough around here on a regular workday for many Piggs to surmise you have absolutely nothing better to do ;=)

You would fare better here to keep your opinions (not based upon any facts or percipient knowledge) as to another Pigg’s “employment status” to yourself. The Piggs are more than tired of having to constantly come across your little arrogant jabs.

[bearishgurl]

[quote=sdrealtor]There are people in this world far more upwardly mobile who want and have the motivation to make it happen but should not be subjected to those standards which are perfectly fine for people in other more stable situations. A blue collar worker or gov’t worker who does not have nearly certain higher income coming should meet those standards. A highly specialized physician who has sacrificed spending 4 yrs in college, 4 years in med school, a year in residency and then a few more in fellowship comes out with much educational debt but a mid 6 figure income. These people often have young families and have lived with sacrifices far beyond what you have made. Their time has come and there should be mortgage loans for them. If I was in the position making residential RE loans I would much rather lend to one of them than a minimally employed paralegal putting 30% but thats just me.[/quote]

I hope all your residential lending forays are successful and profitable, sdr! Anyone with large student loans and the inability to pay them down or pay them off is a “red flag” to me. Often, this indicates they overspent while attending school.

You shouldn’t be judging the degree of another Pigg’s “employment status” that you know nothing about. You post enough around here on a regular workday for many Piggs to surmise you have absolutely nothing better to do ;=)

You would fare better here to keep your opinions (not based upon any facts or percipient knowledge) as to another Pigg’s “employment status” to yourself. The Piggs are more than tired of having to constantly come across your little arrogant jabs.

[bearishgurl]

[quote=sdrealtor]There are people in this world far more upwardly mobile who want and have the motivation to make it happen but should not be subjected to those standards which are perfectly fine for people in other more stable situations. A blue collar worker or gov’t worker who does not have nearly certain higher income coming should meet those standards. A highly specialized physician who has sacrificed spending 4 yrs in college, 4 years in med school, a year in residency and then a few more in fellowship comes out with much educational debt but a mid 6 figure income. These people often have young families and have lived with sacrifices far beyond what you have made. Their time has come and there should be mortgage loans for them. If I was in the position making residential RE loans I would much rather lend to one of them than a minimally employed paralegal putting 30% but thats just me.[/quote]

I hope all your residential lending forays are successful and profitable, sdr! Anyone with large student loans and the inability to pay them down or pay them off is a “red flag” to me. Often, this indicates they overspent while attending school.

You shouldn’t be judging the degree of another Pigg’s “employment status” that you know nothing about. You post enough around here on a regular workday for many Piggs to surmise you have absolutely nothing better to do ;=)

You would fare better here to keep your opinions (not based upon any facts or percipient knowledge) as to another Pigg’s “employment status” to yourself. The Piggs are more than tired of having to constantly come across your little arrogant jabs.

[sdrealtor]

Who said anything about the inability to pay them down or pay them off? Obviously you dont know people in that situation or the cost of that kind of education. I know many and they often finish with $300 to $500K in debt despite living off Top Ramen and driving 20 year old beaters. Many of the loans they have to take out are at high interest rates and it behooves them to pay them off as quickly as they can. Even with incomes starting above $300K/year and quickly rising above $500K it can take 10 years for them to do so which means no saving up for a massive down payment. They also often have to buy into partnerships and fund business. Under your model these people should not be able to purchase even modest homest homes until their mid 40″s despite having virtually guaranteed income placing them in the Top 2% of households in the country. Sorry while your model works for worker bees it holds no water many folks who are more upwardly mobile.

As for me I have plenty of better things to do and do so. I am in and out constantly and live a fairly fast paced life. I cant help it if my week beats your year.

[sdrealtor]

Who said anything about the inability to pay them down or pay them off? Obviously you dont know people in that situation or the cost of that kind of education. I know many and they often finish with $300 to $500K in debt despite living off Top Ramen and driving 20 year old beaters. Many of the loans they have to take out are at high interest rates and it behooves them to pay them off as quickly as they can. Even with incomes starting above $300K/year and quickly rising above $500K it can take 10 years for them to do so which means no saving up for a massive down payment. They also often have to buy into partnerships and fund business. Under your model these people should not be able to purchase even modest homest homes until their mid 40″s despite having virtually guaranteed income placing them in the Top 2% of households in the country. Sorry while your model works for worker bees it holds no water many folks who are more upwardly mobile.

As for me I have plenty of better things to do and do so. I am in and out constantly and live a fairly fast paced life. I cant help it if my week beats your year.

[sdrealtor]

Who said anything about the inability to pay them down or pay them off? Obviously you dont know people in that situation or the cost of that kind of education. I know many and they often finish with $300 to $500K in debt despite living off Top Ramen and driving 20 year old beaters. Many of the loans they have to take out are at high interest rates and it behooves them to pay them off as quickly as they can. Even with incomes starting above $300K/year and quickly rising above $500K it can take 10 years for them to do so which means no saving up for a massive down payment. They also often have to buy into partnerships and fund business. Under your model these people should not be able to purchase even modest homest homes until their mid 40″s despite having virtually guaranteed income placing them in the Top 2% of households in the country. Sorry while your model works for worker bees it holds no water many folks who are more upwardly mobile.

As for me I have plenty of better things to do and do so. I am in and out constantly and live a fairly fast paced life. I cant help it if my week beats your year.

[sdrealtor]

Who said anything about the inability to pay them down or pay them off? Obviously you dont know people in that situation or the cost of that kind of education. I know many and they often finish with $300 to $500K in debt despite living off Top Ramen and driving 20 year old beaters. Many of the loans they have to take out are at high interest rates and it behooves them to pay them off as quickly as they can. Even with incomes starting above $300K/year and quickly rising above $500K it can take 10 years for them to do so which means no saving up for a massive down payment. They also often have to buy into partnerships and fund business. Under your model these people should not be able to purchase even modest homest homes until their mid 40″s despite having virtually guaranteed income placing them in the Top 2% of households in the country. Sorry while your model works for worker bees it holds no water many folks who are more upwardly mobile.

As for me I have plenty of better things to do and do so. I am in and out constantly and live a fairly fast paced life. I cant help it if my week beats your year.

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