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4plexowner
ParticipantThe FDIC Is in Trouble
http://news.goldseek.com/GoldSeek/1249420151.php
[img_assist|nid=11658|title=FDIC coverage ratio|desc=|link=node|align=left|width=400|height=292]
“As you can see, the Federal Deposit Insurance Corporation currently covers each dollar on deposit with a trivial 2/10ths of a penny. ”
“It is hard to draw any other conclusion but that hundreds of billions in new funding will be required to keep the FDIC operating. Given the catastrophic consequences of the FDIC failing, starting with a bank run of biblical proportions, there’s no question it will get whatever funding it needs.”
ParticipantThe FDIC Is in Trouble
http://news.goldseek.com/GoldSeek/1249420151.php
[img_assist|nid=11658|title=FDIC coverage ratio|desc=|link=node|align=left|width=400|height=292]
“As you can see, the Federal Deposit Insurance Corporation currently covers each dollar on deposit with a trivial 2/10ths of a penny. ”
“It is hard to draw any other conclusion but that hundreds of billions in new funding will be required to keep the FDIC operating. Given the catastrophic consequences of the FDIC failing, starting with a bank run of biblical proportions, there’s no question it will get whatever funding it needs.”
ParticipantThe FDIC Is in Trouble
http://news.goldseek.com/GoldSeek/1249420151.php
[img_assist|nid=11658|title=FDIC coverage ratio|desc=|link=node|align=left|width=400|height=292]
“As you can see, the Federal Deposit Insurance Corporation currently covers each dollar on deposit with a trivial 2/10ths of a penny. ”
“It is hard to draw any other conclusion but that hundreds of billions in new funding will be required to keep the FDIC operating. Given the catastrophic consequences of the FDIC failing, starting with a bank run of biblical proportions, there’s no question it will get whatever funding it needs.”
ParticipantThe FDIC Is in Trouble
http://news.goldseek.com/GoldSeek/1249420151.php
[img_assist|nid=11658|title=FDIC coverage ratio|desc=|link=node|align=left|width=400|height=292]
“As you can see, the Federal Deposit Insurance Corporation currently covers each dollar on deposit with a trivial 2/10ths of a penny. ”
“It is hard to draw any other conclusion but that hundreds of billions in new funding will be required to keep the FDIC operating. Given the catastrophic consequences of the FDIC failing, starting with a bank run of biblical proportions, there’s no question it will get whatever funding it needs.”
Participant“Is there any such thing as a zero down investment loan?”
no zero-down that I am aware of
the closest I came to ‘zero down’ was putting 20% down, getting an 80% first mortgage and then taking a 20% 2nd mortgage a few months later – within 3 months I had a very nice 4plex with none of my money invested
“Does a given income qualify me for more $$ for a loan for a multi family property?”
1 to 4 units is considered residential property and qualifies for those types of loans – as soon as you get the 5th unit you are talking about commercial property and the down payment is much higher (35%?)
live in one of the units and you can get owner-occupied financing which will be your lowest down payment
what’s cool about multi-unit is that you count some of the income from the rental units when you are qualifying for the loan – when I was buying multi-unit (1998-2002) lenders were counting 75% of the rental income towards the loan – I believe this percentage has dropped in the last year – different loan programs may accept more or less of the rental income
one challenge with multi-unit in San Diego is that a decent property in an OK location almost certainly requires a jumbo loan – jumbo loans have a higher interest rate – I think current cutoff for jumbo is around $650K
Participant“Is there any such thing as a zero down investment loan?”
no zero-down that I am aware of
the closest I came to ‘zero down’ was putting 20% down, getting an 80% first mortgage and then taking a 20% 2nd mortgage a few months later – within 3 months I had a very nice 4plex with none of my money invested
“Does a given income qualify me for more $$ for a loan for a multi family property?”
1 to 4 units is considered residential property and qualifies for those types of loans – as soon as you get the 5th unit you are talking about commercial property and the down payment is much higher (35%?)
live in one of the units and you can get owner-occupied financing which will be your lowest down payment
what’s cool about multi-unit is that you count some of the income from the rental units when you are qualifying for the loan – when I was buying multi-unit (1998-2002) lenders were counting 75% of the rental income towards the loan – I believe this percentage has dropped in the last year – different loan programs may accept more or less of the rental income
one challenge with multi-unit in San Diego is that a decent property in an OK location almost certainly requires a jumbo loan – jumbo loans have a higher interest rate – I think current cutoff for jumbo is around $650K
Participant“Is there any such thing as a zero down investment loan?”
no zero-down that I am aware of
the closest I came to ‘zero down’ was putting 20% down, getting an 80% first mortgage and then taking a 20% 2nd mortgage a few months later – within 3 months I had a very nice 4plex with none of my money invested
“Does a given income qualify me for more $$ for a loan for a multi family property?”
1 to 4 units is considered residential property and qualifies for those types of loans – as soon as you get the 5th unit you are talking about commercial property and the down payment is much higher (35%?)
live in one of the units and you can get owner-occupied financing which will be your lowest down payment
what’s cool about multi-unit is that you count some of the income from the rental units when you are qualifying for the loan – when I was buying multi-unit (1998-2002) lenders were counting 75% of the rental income towards the loan – I believe this percentage has dropped in the last year – different loan programs may accept more or less of the rental income
one challenge with multi-unit in San Diego is that a decent property in an OK location almost certainly requires a jumbo loan – jumbo loans have a higher interest rate – I think current cutoff for jumbo is around $650K
Participant“Is there any such thing as a zero down investment loan?”
no zero-down that I am aware of
the closest I came to ‘zero down’ was putting 20% down, getting an 80% first mortgage and then taking a 20% 2nd mortgage a few months later – within 3 months I had a very nice 4plex with none of my money invested
“Does a given income qualify me for more $$ for a loan for a multi family property?”
1 to 4 units is considered residential property and qualifies for those types of loans – as soon as you get the 5th unit you are talking about commercial property and the down payment is much higher (35%?)
live in one of the units and you can get owner-occupied financing which will be your lowest down payment
what’s cool about multi-unit is that you count some of the income from the rental units when you are qualifying for the loan – when I was buying multi-unit (1998-2002) lenders were counting 75% of the rental income towards the loan – I believe this percentage has dropped in the last year – different loan programs may accept more or less of the rental income
one challenge with multi-unit in San Diego is that a decent property in an OK location almost certainly requires a jumbo loan – jumbo loans have a higher interest rate – I think current cutoff for jumbo is around $650K
Participant“Is there any such thing as a zero down investment loan?”
no zero-down that I am aware of
the closest I came to ‘zero down’ was putting 20% down, getting an 80% first mortgage and then taking a 20% 2nd mortgage a few months later – within 3 months I had a very nice 4plex with none of my money invested
“Does a given income qualify me for more $$ for a loan for a multi family property?”
1 to 4 units is considered residential property and qualifies for those types of loans – as soon as you get the 5th unit you are talking about commercial property and the down payment is much higher (35%?)
live in one of the units and you can get owner-occupied financing which will be your lowest down payment
what’s cool about multi-unit is that you count some of the income from the rental units when you are qualifying for the loan – when I was buying multi-unit (1998-2002) lenders were counting 75% of the rental income towards the loan – I believe this percentage has dropped in the last year – different loan programs may accept more or less of the rental income
one challenge with multi-unit in San Diego is that a decent property in an OK location almost certainly requires a jumbo loan – jumbo loans have a higher interest rate – I think current cutoff for jumbo is around $650K
ParticipantI agree with you patientrenter – all of the loose change drawers will continue to be refilled promptly – this strategy will work … until it doesn’t
“I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!
This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)
”[img_assist|nid=11639|title=Federal Debt Growth|desc=|link=node|align=left|width=400|height=256]
http://market-ticker.denninger.net/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html
“They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!)”
I think this is the real issue – when you are playing hide-the-sausage with printing press money you have to maintain the people’s confidence in the system – refilling the FDIC loose change drawer could cause a serious blow to this confidence
edit: on the other hand, allowing FDIC to go broke would obviously cause a bigger confidence issue so, one way or another, FDIC will continue to have funding and they will continue to ignore banks that should be shut down – like I said, this strategy will work until it doesn’t
ParticipantI agree with you patientrenter – all of the loose change drawers will continue to be refilled promptly – this strategy will work … until it doesn’t
“I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!
This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)
”[img_assist|nid=11639|title=Federal Debt Growth|desc=|link=node|align=left|width=400|height=256]
http://market-ticker.denninger.net/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html
“They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!)”
I think this is the real issue – when you are playing hide-the-sausage with printing press money you have to maintain the people’s confidence in the system – refilling the FDIC loose change drawer could cause a serious blow to this confidence
edit: on the other hand, allowing FDIC to go broke would obviously cause a bigger confidence issue so, one way or another, FDIC will continue to have funding and they will continue to ignore banks that should be shut down – like I said, this strategy will work until it doesn’t
ParticipantI agree with you patientrenter – all of the loose change drawers will continue to be refilled promptly – this strategy will work … until it doesn’t
“I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!
This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)
”[img_assist|nid=11639|title=Federal Debt Growth|desc=|link=node|align=left|width=400|height=256]
http://market-ticker.denninger.net/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html
“They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!)”
I think this is the real issue – when you are playing hide-the-sausage with printing press money you have to maintain the people’s confidence in the system – refilling the FDIC loose change drawer could cause a serious blow to this confidence
edit: on the other hand, allowing FDIC to go broke would obviously cause a bigger confidence issue so, one way or another, FDIC will continue to have funding and they will continue to ignore banks that should be shut down – like I said, this strategy will work until it doesn’t
ParticipantI agree with you patientrenter – all of the loose change drawers will continue to be refilled promptly – this strategy will work … until it doesn’t
“I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!
This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)
”[img_assist|nid=11639|title=Federal Debt Growth|desc=|link=node|align=left|width=400|height=256]
http://market-ticker.denninger.net/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html
“They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!)”
I think this is the real issue – when you are playing hide-the-sausage with printing press money you have to maintain the people’s confidence in the system – refilling the FDIC loose change drawer could cause a serious blow to this confidence
edit: on the other hand, allowing FDIC to go broke would obviously cause a bigger confidence issue so, one way or another, FDIC will continue to have funding and they will continue to ignore banks that should be shut down – like I said, this strategy will work until it doesn’t
ParticipantI agree with you patientrenter – all of the loose change drawers will continue to be refilled promptly – this strategy will work … until it doesn’t
“I believe the FDIC is broke and knows it; that under the law they should have seized these three banks (and many dozens more, including some really big ones) some time ago, but doing so will force them to tap the Treasury “emergency” credit line. They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!); as such they, along with OTS and OCC are conspiring to (once again) hide the truth and pray for an economic recovery before they are forced to act as the law demanded months or even years ago!
This is nothing more than an attempt to keep this graph from looking dramatically worse than it already does and keep the “green shoot” lie alive to pump the stock market so that Americans “feel better.” Big banking and other executives are taking advantage of this lie by selling shares into an overheated market (which they have been doing, by the way: Insider sales are at levels last seen just before the top in October of 2007!)
”[img_assist|nid=11639|title=Federal Debt Growth|desc=|link=node|align=left|width=400|height=256]
http://market-ticker.denninger.net/archives/1283-Is-The-FDIC-Broke-And-Covering-It-Up.html
“They’re well-aware that this could instill quite a bit of panic in the public (never mind Congress!)”
I think this is the real issue – when you are playing hide-the-sausage with printing press money you have to maintain the people’s confidence in the system – refilling the FDIC loose change drawer could cause a serious blow to this confidence
edit: on the other hand, allowing FDIC to go broke would obviously cause a bigger confidence issue so, one way or another, FDIC will continue to have funding and they will continue to ignore banks that should be shut down – like I said, this strategy will work until it doesn’t
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