Why can I not get a loan?

[kicksavedave]

[quote=sdduuuude]Double check that. Looks like PMI is deductable.[/quote]

As of April 2008 (when I got my loan), PMI is not deductible if you earn a combined $110K or more. The full PMI deduction is only available to folks making less than $100K, it phases out up to $110K. So if you are in the $250K bracket and looking for a jumbo house, it is almost mandatory that you put down 20% or buy down the PMI at about 3/8% interest (if they even allow that anymore), because that giant PMI sum each month is completely wasted, pure profit for the bank.

[Effective Demand]

PMI for high balance loans is pretty much maxed out at 85% for CA. The super conforming or conforming limit appears to be a lock for going back up to 729k with the new stimulus bill so that may make FHA available to the OP.

Fannie/Freddie can’t make a loan over 80% LTV without MI and the MI companies don’t want much to do with CA right now.

Here is a graphical representation of what is going on as of October for Ventura. Note the 729k line should be returning as the new max:

http://effectivedemand.blogspot.com/2009/01/ventura-county-october-2008-loan-to.html

Here is a link that at the bottom has links to the MI guidelines:
http://effectivedemand.blogspot.com/2008/12/mortgage-insurers-tighten-underwriting.html

[Effective Demand]

PMI for high balance loans is pretty much maxed out at 85% for CA. The super conforming or conforming limit appears to be a lock for going back up to 729k with the new stimulus bill so that may make FHA available to the OP.

Fannie/Freddie can’t make a loan over 80% LTV without MI and the MI companies don’t want much to do with CA right now.

Here is a graphical representation of what is going on as of October for Ventura. Note the 729k line should be returning as the new max:

http://effectivedemand.blogspot.com/2009/01/ventura-county-october-2008-loan-to.html

Here is a link that at the bottom has links to the MI guidelines:
http://effectivedemand.blogspot.com/2008/12/mortgage-insurers-tighten-underwriting.html

[Effective Demand]

PMI for high balance loans is pretty much maxed out at 85% for CA. The super conforming or conforming limit appears to be a lock for going back up to 729k with the new stimulus bill so that may make FHA available to the OP.

Fannie/Freddie can’t make a loan over 80% LTV without MI and the MI companies don’t want much to do with CA right now.

Here is a graphical representation of what is going on as of October for Ventura. Note the 729k line should be returning as the new max:

http://effectivedemand.blogspot.com/2009/01/ventura-county-october-2008-loan-to.html

Here is a link that at the bottom has links to the MI guidelines:
http://effectivedemand.blogspot.com/2008/12/mortgage-insurers-tighten-underwriting.html

[Effective Demand]

PMI for high balance loans is pretty much maxed out at 85% for CA. The super conforming or conforming limit appears to be a lock for going back up to 729k with the new stimulus bill so that may make FHA available to the OP.

Fannie/Freddie can’t make a loan over 80% LTV without MI and the MI companies don’t want much to do with CA right now.

Here is a graphical representation of what is going on as of October for Ventura. Note the 729k line should be returning as the new max:

http://effectivedemand.blogspot.com/2009/01/ventura-county-october-2008-loan-to.html

Here is a link that at the bottom has links to the MI guidelines:
http://effectivedemand.blogspot.com/2008/12/mortgage-insurers-tighten-underwriting.html

[Effective Demand]

PMI for high balance loans is pretty much maxed out at 85% for CA. The super conforming or conforming limit appears to be a lock for going back up to 729k with the new stimulus bill so that may make FHA available to the OP.

Fannie/Freddie can’t make a loan over 80% LTV without MI and the MI companies don’t want much to do with CA right now.

Here is a graphical representation of what is going on as of October for Ventura. Note the 729k line should be returning as the new max:

http://effectivedemand.blogspot.com/2009/01/ventura-county-october-2008-loan-to.html

Here is a link that at the bottom has links to the MI guidelines:
http://effectivedemand.blogspot.com/2008/12/mortgage-insurers-tighten-underwriting.html

[temeculaguy]

oc, thanks for the kudos, It’s still your theory (2001, et al), I’m just renting it.

Before we get too technical about the income tax deduction, use the rough rules of P&I vs rent. Taxes, insurance, MI, Hoa, water, trash, and all the other ownership expenses are roughly covered by the tax deduction. Compare the P&I by itself to comparable rent.

When the P&I and the rent are close to a draw, the knife is dull.

The deduction is nice but it is not a cure all, a wise man once told me, “Would you rather give $3 dollars to the bank or $1 to the government?”

[temeculaguy]

oc, thanks for the kudos, It’s still your theory (2001, et al), I’m just renting it.

Before we get too technical about the income tax deduction, use the rough rules of P&I vs rent. Taxes, insurance, MI, Hoa, water, trash, and all the other ownership expenses are roughly covered by the tax deduction. Compare the P&I by itself to comparable rent.

When the P&I and the rent are close to a draw, the knife is dull.

The deduction is nice but it is not a cure all, a wise man once told me, “Would you rather give $3 dollars to the bank or $1 to the government?”

[temeculaguy]

oc, thanks for the kudos, It’s still your theory (2001, et al), I’m just renting it.

Before we get too technical about the income tax deduction, use the rough rules of P&I vs rent. Taxes, insurance, MI, Hoa, water, trash, and all the other ownership expenses are roughly covered by the tax deduction. Compare the P&I by itself to comparable rent.

When the P&I and the rent are close to a draw, the knife is dull.

The deduction is nice but it is not a cure all, a wise man once told me, “Would you rather give $3 dollars to the bank or $1 to the government?”

[temeculaguy]

oc, thanks for the kudos, It’s still your theory (2001, et al), I’m just renting it.

Before we get too technical about the income tax deduction, use the rough rules of P&I vs rent. Taxes, insurance, MI, Hoa, water, trash, and all the other ownership expenses are roughly covered by the tax deduction. Compare the P&I by itself to comparable rent.

When the P&I and the rent are close to a draw, the knife is dull.

The deduction is nice but it is not a cure all, a wise man once told me, “Would you rather give $3 dollars to the bank or $1 to the government?”

[temeculaguy]

oc, thanks for the kudos, It’s still your theory (2001, et al), I’m just renting it.

Before we get too technical about the income tax deduction, use the rough rules of P&I vs rent. Taxes, insurance, MI, Hoa, water, trash, and all the other ownership expenses are roughly covered by the tax deduction. Compare the P&I by itself to comparable rent.

When the P&I and the rent are close to a draw, the knife is dull.

The deduction is nice but it is not a cure all, a wise man once told me, “Would you rather give $3 dollars to the bank or $1 to the government?”

[XBoxBoy]

[quote=esmith]If the house can be rented for 2500, buying does not make sense. If it can be rented for 3500, it’s a toss up.[/quote]

Provided the home doesn’t lose value or gain value.

But the point is not the details of the calculation, but the probably loss due to depreciation of the homes value overwhelms the tax savings very quickly. My numbers could easily be off, doesn’t matter, the probably loss on an 800k home in N County is gonna clobber those tax savings.

XBoxBoy

[XBoxBoy]

[quote=esmith]If the house can be rented for 2500, buying does not make sense. If it can be rented for 3500, it’s a toss up.[/quote]

Provided the home doesn’t lose value or gain value.

But the point is not the details of the calculation, but the probably loss due to depreciation of the homes value overwhelms the tax savings very quickly. My numbers could easily be off, doesn’t matter, the probably loss on an 800k home in N County is gonna clobber those tax savings.

XBoxBoy

[XBoxBoy]

[quote=esmith]If the house can be rented for 2500, buying does not make sense. If it can be rented for 3500, it’s a toss up.[/quote]

Provided the home doesn’t lose value or gain value.

But the point is not the details of the calculation, but the probably loss due to depreciation of the homes value overwhelms the tax savings very quickly. My numbers could easily be off, doesn’t matter, the probably loss on an 800k home in N County is gonna clobber those tax savings.

XBoxBoy

[XBoxBoy]

[quote=esmith]If the house can be rented for 2500, buying does not make sense. If it can be rented for 3500, it’s a toss up.[/quote]

Provided the home doesn’t lose value or gain value.

But the point is not the details of the calculation, but the probably loss due to depreciation of the homes value overwhelms the tax savings very quickly. My numbers could easily be off, doesn’t matter, the probably loss on an 800k home in N County is gonna clobber those tax savings.

XBoxBoy

[Author]

Posts