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Bob
Participant[quote=temeculaguy]Bob, do you not like FHA loans because you read they were risky or that they look similar to the toxic loans of the past. I can probably help you over those fears. [/quote]
Actually, I’m not fearful of anything, just providing my advice based on what the poster asked. And the fact is, FHA loans have a high default rate. Various reasons for that – one of which is the purchaser has far less skin in the game making a 4% down payment rather than a 20% down payment. The Feds are well aware of the risk, but don’t care because they know the taxpayers will cover the costs when the loans go bad.
Participant[quote=temeculaguy]Bob, do you not like FHA loans because you read they were risky or that they look similar to the toxic loans of the past. I can probably help you over those fears. [/quote]
Actually, I’m not fearful of anything, just providing my advice based on what the poster asked. And the fact is, FHA loans have a high default rate. Various reasons for that – one of which is the purchaser has far less skin in the game making a 4% down payment rather than a 20% down payment. The Feds are well aware of the risk, but don’t care because they know the taxpayers will cover the costs when the loans go bad.
Participant[quote=temeculaguy]Bob, do you not like FHA loans because you read they were risky or that they look similar to the toxic loans of the past. I can probably help you over those fears. [/quote]
Actually, I’m not fearful of anything, just providing my advice based on what the poster asked. And the fact is, FHA loans have a high default rate. Various reasons for that – one of which is the purchaser has far less skin in the game making a 4% down payment rather than a 20% down payment. The Feds are well aware of the risk, but don’t care because they know the taxpayers will cover the costs when the loans go bad.
Participant[quote=temeculaguy]Bob, do you not like FHA loans because you read they were risky or that they look similar to the toxic loans of the past. I can probably help you over those fears. [/quote]
Actually, I’m not fearful of anything, just providing my advice based on what the poster asked. And the fact is, FHA loans have a high default rate. Various reasons for that – one of which is the purchaser has far less skin in the game making a 4% down payment rather than a 20% down payment. The Feds are well aware of the risk, but don’t care because they know the taxpayers will cover the costs when the loans go bad.
Participant[quote=SD Realtor]Personally I could not sleep at night if I didn’t have at least 6 months to a year reserves stashed somewhere or at least some type of plan to take care of my family if I lost employment. It doesn’t matter if the loan was an FHA loan or if I put all cash in. Having a strong reserve is in my opinion very important these days. That is just me though.
[/quote]And thats my point.
The person who started this thread seemed to suggest that they only had $55K in savings without much of a reserve. Purchasing a $450K house under that scenario is extremely risky and should be avoided. On the other hand, if they have another $50K stashed away in addition to the $55K down payment, then there isn’t as much risk.
As far as my point about FHA loans, the stats don’t lie. People with little or no equity in their home tend to default at a much higher rate. Therefore, I believe purchasers should be required to have a sufficient amount of down payment…say 20%.
Participant[quote=SD Realtor]Personally I could not sleep at night if I didn’t have at least 6 months to a year reserves stashed somewhere or at least some type of plan to take care of my family if I lost employment. It doesn’t matter if the loan was an FHA loan or if I put all cash in. Having a strong reserve is in my opinion very important these days. That is just me though.
[/quote]And thats my point.
The person who started this thread seemed to suggest that they only had $55K in savings without much of a reserve. Purchasing a $450K house under that scenario is extremely risky and should be avoided. On the other hand, if they have another $50K stashed away in addition to the $55K down payment, then there isn’t as much risk.
As far as my point about FHA loans, the stats don’t lie. People with little or no equity in their home tend to default at a much higher rate. Therefore, I believe purchasers should be required to have a sufficient amount of down payment…say 20%.
Participant[quote=SD Realtor]Personally I could not sleep at night if I didn’t have at least 6 months to a year reserves stashed somewhere or at least some type of plan to take care of my family if I lost employment. It doesn’t matter if the loan was an FHA loan or if I put all cash in. Having a strong reserve is in my opinion very important these days. That is just me though.
[/quote]And thats my point.
The person who started this thread seemed to suggest that they only had $55K in savings without much of a reserve. Purchasing a $450K house under that scenario is extremely risky and should be avoided. On the other hand, if they have another $50K stashed away in addition to the $55K down payment, then there isn’t as much risk.
As far as my point about FHA loans, the stats don’t lie. People with little or no equity in their home tend to default at a much higher rate. Therefore, I believe purchasers should be required to have a sufficient amount of down payment…say 20%.
Participant[quote=SD Realtor]Personally I could not sleep at night if I didn’t have at least 6 months to a year reserves stashed somewhere or at least some type of plan to take care of my family if I lost employment. It doesn’t matter if the loan was an FHA loan or if I put all cash in. Having a strong reserve is in my opinion very important these days. That is just me though.
[/quote]And thats my point.
The person who started this thread seemed to suggest that they only had $55K in savings without much of a reserve. Purchasing a $450K house under that scenario is extremely risky and should be avoided. On the other hand, if they have another $50K stashed away in addition to the $55K down payment, then there isn’t as much risk.
As far as my point about FHA loans, the stats don’t lie. People with little or no equity in their home tend to default at a much higher rate. Therefore, I believe purchasers should be required to have a sufficient amount of down payment…say 20%.
Participant[quote=SD Realtor]Personally I could not sleep at night if I didn’t have at least 6 months to a year reserves stashed somewhere or at least some type of plan to take care of my family if I lost employment. It doesn’t matter if the loan was an FHA loan or if I put all cash in. Having a strong reserve is in my opinion very important these days. That is just me though.
[/quote]And thats my point.
The person who started this thread seemed to suggest that they only had $55K in savings without much of a reserve. Purchasing a $450K house under that scenario is extremely risky and should be avoided. On the other hand, if they have another $50K stashed away in addition to the $55K down payment, then there isn’t as much risk.
As far as my point about FHA loans, the stats don’t lie. People with little or no equity in their home tend to default at a much higher rate. Therefore, I believe purchasers should be required to have a sufficient amount of down payment…say 20%.
Participant[quote=garysears]I agree with CA renter. I’m tired of hearing how REO’s are “deeply discounted”. They are actually the market. If they were worth more, people would be paying more.[/quote]
A well known San Diego real estate broker was quoted in the Union/Tribune saying the same thing about how foreclosures are deeply discounted. This guy went one step further and proclaimed that once all the foreclosures are off the market prices will rebound back to their previously high levels. Either this guy gets paid to spew this garbage, or he’s just an idiot.
Participant[quote=garysears]I agree with CA renter. I’m tired of hearing how REO’s are “deeply discounted”. They are actually the market. If they were worth more, people would be paying more.[/quote]
A well known San Diego real estate broker was quoted in the Union/Tribune saying the same thing about how foreclosures are deeply discounted. This guy went one step further and proclaimed that once all the foreclosures are off the market prices will rebound back to their previously high levels. Either this guy gets paid to spew this garbage, or he’s just an idiot.
Participant[quote=garysears]I agree with CA renter. I’m tired of hearing how REO’s are “deeply discounted”. They are actually the market. If they were worth more, people would be paying more.[/quote]
A well known San Diego real estate broker was quoted in the Union/Tribune saying the same thing about how foreclosures are deeply discounted. This guy went one step further and proclaimed that once all the foreclosures are off the market prices will rebound back to their previously high levels. Either this guy gets paid to spew this garbage, or he’s just an idiot.
Participant[quote=garysears]I agree with CA renter. I’m tired of hearing how REO’s are “deeply discounted”. They are actually the market. If they were worth more, people would be paying more.[/quote]
A well known San Diego real estate broker was quoted in the Union/Tribune saying the same thing about how foreclosures are deeply discounted. This guy went one step further and proclaimed that once all the foreclosures are off the market prices will rebound back to their previously high levels. Either this guy gets paid to spew this garbage, or he’s just an idiot.
Participant[quote=garysears]I agree with CA renter. I’m tired of hearing how REO’s are “deeply discounted”. They are actually the market. If they were worth more, people would be paying more.[/quote]
A well known San Diego real estate broker was quoted in the Union/Tribune saying the same thing about how foreclosures are deeply discounted. This guy went one step further and proclaimed that once all the foreclosures are off the market prices will rebound back to their previously high levels. Either this guy gets paid to spew this garbage, or he’s just an idiot.
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