Sensible rules proposed for mortgage industry

[an]

[quote=briansd1]
The limit should be low because housing subsidy should be for basic shelter, not fancy houses.[/quote]
$250k can buy you a mcMansion in some area and a 800 sq-ft shack in another. Which do you consider a fancy house?

[briansd1]

[quote=AN][quote=briansd1]
The limit should be low because housing subsidy should be for basic shelter, not fancy houses.[/quote]
$250k can buy you a mcMansion in some area and a 800 sq-ft shack in another. Which do you consider a fancy house?[/quote]

Like I said, subsidy is for a max limit. An arbitrary limit needs to be set because everybody cannot be accomodated.

If a buyer wants to a better house, he can move to a lower cost area, or use his own resources (without subsidy) to buy in a high-cost area.

Why do people who can afford to buy houses expect a hand out from the government in the form of loan subsidies?

[briansd1]

[quote=AN][quote=briansd1]
The limit should be low because housing subsidy should be for basic shelter, not fancy houses.[/quote]
$250k can buy you a mcMansion in some area and a 800 sq-ft shack in another. Which do you consider a fancy house?[/quote]

Like I said, subsidy is for a max limit. An arbitrary limit needs to be set because everybody cannot be accomodated.

If a buyer wants to a better house, he can move to a lower cost area, or use his own resources (without subsidy) to buy in a high-cost area.

Why do people who can afford to buy houses expect a hand out from the government in the form of loan subsidies?

[briansd1]

[quote=AN][quote=briansd1]
The limit should be low because housing subsidy should be for basic shelter, not fancy houses.[/quote]
$250k can buy you a mcMansion in some area and a 800 sq-ft shack in another. Which do you consider a fancy house?[/quote]

Like I said, subsidy is for a max limit. An arbitrary limit needs to be set because everybody cannot be accomodated.

If a buyer wants to a better house, he can move to a lower cost area, or use his own resources (without subsidy) to buy in a high-cost area.

Why do people who can afford to buy houses expect a hand out from the government in the form of loan subsidies?

[briansd1]

[quote=AN][quote=briansd1]
The limit should be low because housing subsidy should be for basic shelter, not fancy houses.[/quote]
$250k can buy you a mcMansion in some area and a 800 sq-ft shack in another. Which do you consider a fancy house?[/quote]

Like I said, subsidy is for a max limit. An arbitrary limit needs to be set because everybody cannot be accomodated.

If a buyer wants to a better house, he can move to a lower cost area, or use his own resources (without subsidy) to buy in a high-cost area.

Why do people who can afford to buy houses expect a hand out from the government in the form of loan subsidies?

[briansd1]

[quote=AN][quote=briansd1]
The limit should be low because housing subsidy should be for basic shelter, not fancy houses.[/quote]
$250k can buy you a mcMansion in some area and a 800 sq-ft shack in another. Which do you consider a fancy house?[/quote]

Like I said, subsidy is for a max limit. An arbitrary limit needs to be set because everybody cannot be accomodated.

If a buyer wants to a better house, he can move to a lower cost area, or use his own resources (without subsidy) to buy in a high-cost area.

Why do people who can afford to buy houses expect a hand out from the government in the form of loan subsidies?

[an]

[quote=briansd1]
Like I said, subsidy is for a max limit. An arbitrary limit needs to be set because everybody cannot be accomodated.

If a buyer wants to a better house, he can move to a lower cost area, or use his own resources (without subsidy) to buy in a high-cost area.

Why do people who can afford to buy houses expect a hand out from the government in the form of loan subsidies?[/quote]
Again, do you think people who buy a 3000 sq-ft house should get government subsidy? We should lower the government subsidy to $60k. That will buy you a starter home in a cheap area. If you’re going to draw a line, then why allow a line high enough to allow any kind of McMansion?

[an]

[quote=briansd1]
Like I said, subsidy is for a max limit. An arbitrary limit needs to be set because everybody cannot be accomodated.

If a buyer wants to a better house, he can move to a lower cost area, or use his own resources (without subsidy) to buy in a high-cost area.

Why do people who can afford to buy houses expect a hand out from the government in the form of loan subsidies?[/quote]
Again, do you think people who buy a 3000 sq-ft house should get government subsidy? We should lower the government subsidy to $60k. That will buy you a starter home in a cheap area. If you’re going to draw a line, then why allow a line high enough to allow any kind of McMansion?

[an]

[quote=briansd1]
Like I said, subsidy is for a max limit. An arbitrary limit needs to be set because everybody cannot be accomodated.

If a buyer wants to a better house, he can move to a lower cost area, or use his own resources (without subsidy) to buy in a high-cost area.

Why do people who can afford to buy houses expect a hand out from the government in the form of loan subsidies?[/quote]
Again, do you think people who buy a 3000 sq-ft house should get government subsidy? We should lower the government subsidy to $60k. That will buy you a starter home in a cheap area. If you’re going to draw a line, then why allow a line high enough to allow any kind of McMansion?

[an]

[quote=briansd1]
Like I said, subsidy is for a max limit. An arbitrary limit needs to be set because everybody cannot be accomodated.

If a buyer wants to a better house, he can move to a lower cost area, or use his own resources (without subsidy) to buy in a high-cost area.

Why do people who can afford to buy houses expect a hand out from the government in the form of loan subsidies?[/quote]
Again, do you think people who buy a 3000 sq-ft house should get government subsidy? We should lower the government subsidy to $60k. That will buy you a starter home in a cheap area. If you’re going to draw a line, then why allow a line high enough to allow any kind of McMansion?

[an]

[quote=briansd1]
Like I said, subsidy is for a max limit. An arbitrary limit needs to be set because everybody cannot be accomodated.

If a buyer wants to a better house, he can move to a lower cost area, or use his own resources (without subsidy) to buy in a high-cost area.

Why do people who can afford to buy houses expect a hand out from the government in the form of loan subsidies?[/quote]
Again, do you think people who buy a 3000 sq-ft house should get government subsidy? We should lower the government subsidy to $60k. That will buy you a starter home in a cheap area. If you’re going to draw a line, then why allow a line high enough to allow any kind of McMansion?

[paramount]

Yah, let’s prevent the same people who had to pay for bank bailouts from owning a house.

The rules stated in the article are far to stringent.

The following basic guidelines make sense (although each situation should be treated uniquely):

Credit Score: 650 and above
Down Payment: Anything below 20% pays PMI
Income Ratio: 36% Gross Income to Loan Amount

[paramount]

Yah, let’s prevent the same people who had to pay for bank bailouts from owning a house.

The rules stated in the article are far to stringent.

The following basic guidelines make sense (although each situation should be treated uniquely):

Credit Score: 650 and above
Down Payment: Anything below 20% pays PMI
Income Ratio: 36% Gross Income to Loan Amount

[paramount]

Yah, let’s prevent the same people who had to pay for bank bailouts from owning a house.

The rules stated in the article are far to stringent.

The following basic guidelines make sense (although each situation should be treated uniquely):

Credit Score: 650 and above
Down Payment: Anything below 20% pays PMI
Income Ratio: 36% Gross Income to Loan Amount

[paramount]

Yah, let’s prevent the same people who had to pay for bank bailouts from owning a house.

The rules stated in the article are far to stringent.

The following basic guidelines make sense (although each situation should be treated uniquely):

Credit Score: 650 and above
Down Payment: Anything below 20% pays PMI
Income Ratio: 36% Gross Income to Loan Amount

[Author]

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