[Bob]

[quote=patientrenter]I think you’re seeing a tug of war going on here between the conflicting inner selves of the piggs. Selfishly, we all know that buying a house with little or none of your own money (e.g. FHA deals) is almost certainly a great deal.[/quote]

The reason I oppose most FHA loans isn’t because they are a great deal…its because they are a RISKY deal. Particulary at a time when unemployment is rising. In my opinion, its irresponsible for the Feds to be backing these types of loans when we are in the middle of a foreclosure crisis when they know full well that the default rate on FHA’s is much higher than conventional loans.

I have nothing against the person who started this thread, but lets suppose he/she purchases a home for $450K with 5% down. There’s a real possibility that by the end of the year this person will have a property that’s only worth $400K, yet will be forking out big monthly payments on a house that has depreciated in value. Is it still a great deal then ? This person will be just another statistic on the verge of a potential foreclosure if his/her income decreases for whatever reason.

Once again, my advice would be to find a home that is affordable at a much lower price range that reduces the financial risk.

[Bob]

[quote=patientrenter]I think you’re seeing a tug of war going on here between the conflicting inner selves of the piggs. Selfishly, we all know that buying a house with little or none of your own money (e.g. FHA deals) is almost certainly a great deal.[/quote]

The reason I oppose most FHA loans isn’t because they are a great deal…its because they are a RISKY deal. Particulary at a time when unemployment is rising. In my opinion, its irresponsible for the Feds to be backing these types of loans when we are in the middle of a foreclosure crisis when they know full well that the default rate on FHA’s is much higher than conventional loans.

I have nothing against the person who started this thread, but lets suppose he/she purchases a home for $450K with 5% down. There’s a real possibility that by the end of the year this person will have a property that’s only worth $400K, yet will be forking out big monthly payments on a house that has depreciated in value. Is it still a great deal then ? This person will be just another statistic on the verge of a potential foreclosure if his/her income decreases for whatever reason.

Once again, my advice would be to find a home that is affordable at a much lower price range that reduces the financial risk.

[Bob]

[quote=patientrenter]I think you’re seeing a tug of war going on here between the conflicting inner selves of the piggs. Selfishly, we all know that buying a house with little or none of your own money (e.g. FHA deals) is almost certainly a great deal.[/quote]

The reason I oppose most FHA loans isn’t because they are a great deal…its because they are a RISKY deal. Particulary at a time when unemployment is rising. In my opinion, its irresponsible for the Feds to be backing these types of loans when we are in the middle of a foreclosure crisis when they know full well that the default rate on FHA’s is much higher than conventional loans.

I have nothing against the person who started this thread, but lets suppose he/she purchases a home for $450K with 5% down. There’s a real possibility that by the end of the year this person will have a property that’s only worth $400K, yet will be forking out big monthly payments on a house that has depreciated in value. Is it still a great deal then ? This person will be just another statistic on the verge of a potential foreclosure if his/her income decreases for whatever reason.

Once again, my advice would be to find a home that is affordable at a much lower price range that reduces the financial risk.

[Bob]

[quote=patientrenter]I think you’re seeing a tug of war going on here between the conflicting inner selves of the piggs. Selfishly, we all know that buying a house with little or none of your own money (e.g. FHA deals) is almost certainly a great deal.[/quote]

The reason I oppose most FHA loans isn’t because they are a great deal…its because they are a RISKY deal. Particulary at a time when unemployment is rising. In my opinion, its irresponsible for the Feds to be backing these types of loans when we are in the middle of a foreclosure crisis when they know full well that the default rate on FHA’s is much higher than conventional loans.

I have nothing against the person who started this thread, but lets suppose he/she purchases a home for $450K with 5% down. There’s a real possibility that by the end of the year this person will have a property that’s only worth $400K, yet will be forking out big monthly payments on a house that has depreciated in value. Is it still a great deal then ? This person will be just another statistic on the verge of a potential foreclosure if his/her income decreases for whatever reason.

Once again, my advice would be to find a home that is affordable at a much lower price range that reduces the financial risk.

[Bob]

[quote=patientrenter]I think you’re seeing a tug of war going on here between the conflicting inner selves of the piggs. Selfishly, we all know that buying a house with little or none of your own money (e.g. FHA deals) is almost certainly a great deal.[/quote]

The reason I oppose most FHA loans isn’t because they are a great deal…its because they are a RISKY deal. Particulary at a time when unemployment is rising. In my opinion, its irresponsible for the Feds to be backing these types of loans when we are in the middle of a foreclosure crisis when they know full well that the default rate on FHA’s is much higher than conventional loans.

I have nothing against the person who started this thread, but lets suppose he/she purchases a home for $450K with 5% down. There’s a real possibility that by the end of the year this person will have a property that’s only worth $400K, yet will be forking out big monthly payments on a house that has depreciated in value. Is it still a great deal then ? This person will be just another statistic on the verge of a potential foreclosure if his/her income decreases for whatever reason.

Once again, my advice would be to find a home that is affordable at a much lower price range that reduces the financial risk.

[Bob]

[quote=EmilyHicks]Hi,

My first post here.

I and my husband want to buy a house in the range of $400,000 to $450,000 but we only have $55,000 cash. Our combined income is higher than $140,000.

Is it possible to put a 10% down right now? Do we even have enough for a 10% down payment considering other costs related to home buying?

thanks[/quote]

Since you asked a sincere question, I will give you a sincere answer.

If you only have $55K on hand for a down payment, NO WAY should you be looking in the range of $400K-$450K. While its technically possible to get in with 10% down or less, doing so puts you at risk if one of you loses your source of income. This is the type of behavior that caused much of the bubble the last few years. Many are pumping FHA loans, yet the stats show that FHA loans have a very high default rate due to people getting in over their heads. In my opinion, FHA loans should be eliminated, but thats a subject for a different thread.

My advice to you is to find something you can afford at a lower price range, or save up until you have a larger down payment.

[Bob]

[quote=EmilyHicks]Hi,

My first post here.

I and my husband want to buy a house in the range of $400,000 to $450,000 but we only have $55,000 cash. Our combined income is higher than $140,000.

Is it possible to put a 10% down right now? Do we even have enough for a 10% down payment considering other costs related to home buying?

thanks[/quote]

Since you asked a sincere question, I will give you a sincere answer.

If you only have $55K on hand for a down payment, NO WAY should you be looking in the range of $400K-$450K. While its technically possible to get in with 10% down or less, doing so puts you at risk if one of you loses your source of income. This is the type of behavior that caused much of the bubble the last few years. Many are pumping FHA loans, yet the stats show that FHA loans have a very high default rate due to people getting in over their heads. In my opinion, FHA loans should be eliminated, but thats a subject for a different thread.

My advice to you is to find something you can afford at a lower price range, or save up until you have a larger down payment.

[Bob]

[quote=EmilyHicks]Hi,

My first post here.

I and my husband want to buy a house in the range of $400,000 to $450,000 but we only have $55,000 cash. Our combined income is higher than $140,000.

Is it possible to put a 10% down right now? Do we even have enough for a 10% down payment considering other costs related to home buying?

thanks[/quote]

Since you asked a sincere question, I will give you a sincere answer.

If you only have $55K on hand for a down payment, NO WAY should you be looking in the range of $400K-$450K. While its technically possible to get in with 10% down or less, doing so puts you at risk if one of you loses your source of income. This is the type of behavior that caused much of the bubble the last few years. Many are pumping FHA loans, yet the stats show that FHA loans have a very high default rate due to people getting in over their heads. In my opinion, FHA loans should be eliminated, but thats a subject for a different thread.

My advice to you is to find something you can afford at a lower price range, or save up until you have a larger down payment.

[Bob]

[quote=EmilyHicks]Hi,

My first post here.

I and my husband want to buy a house in the range of $400,000 to $450,000 but we only have $55,000 cash. Our combined income is higher than $140,000.

Is it possible to put a 10% down right now? Do we even have enough for a 10% down payment considering other costs related to home buying?

thanks[/quote]

Since you asked a sincere question, I will give you a sincere answer.

If you only have $55K on hand for a down payment, NO WAY should you be looking in the range of $400K-$450K. While its technically possible to get in with 10% down or less, doing so puts you at risk if one of you loses your source of income. This is the type of behavior that caused much of the bubble the last few years. Many are pumping FHA loans, yet the stats show that FHA loans have a very high default rate due to people getting in over their heads. In my opinion, FHA loans should be eliminated, but thats a subject for a different thread.

My advice to you is to find something you can afford at a lower price range, or save up until you have a larger down payment.

[Bob]

[quote=EmilyHicks]Hi,

My first post here.

I and my husband want to buy a house in the range of $400,000 to $450,000 but we only have $55,000 cash. Our combined income is higher than $140,000.

Is it possible to put a 10% down right now? Do we even have enough for a 10% down payment considering other costs related to home buying?

thanks[/quote]

Since you asked a sincere question, I will give you a sincere answer.

If you only have $55K on hand for a down payment, NO WAY should you be looking in the range of $400K-$450K. While its technically possible to get in with 10% down or less, doing so puts you at risk if one of you loses your source of income. This is the type of behavior that caused much of the bubble the last few years. Many are pumping FHA loans, yet the stats show that FHA loans have a very high default rate due to people getting in over their heads. In my opinion, FHA loans should be eliminated, but thats a subject for a different thread.

My advice to you is to find something you can afford at a lower price range, or save up until you have a larger down payment.

[Bob]

As an update on what I’m seeing in the TV…

REO’s continue to hit the market with lowball list prices, but the total number of new REO’s continues to trickle instead of flow. List prices continue to be lowball to get people in the door, and once in the door, multiple offers are the norm.

What I’ve experienced first hand, as well as been told by two very reliable sources in the banking industry, is the following…..Banks LOVE cash offers and will take a cash offer at list, or slightly above list (unless there are competing cash offers). If a bidding war starts on a property with numerous FHA offers, as well as 20% down offers, the banks will still take the cash offer, even if it is significantly lower than the others.

For example,,,a good friend and listing agent told me that he had a listing with 17 offers, all conventional loan/FHA. On the final day a cash offer came in at only $1K over list and was accepted. The point is, cash is king, and FHA loans are crap because of the high default rate on them.

[Bob]

As an update on what I’m seeing in the TV…

REO’s continue to hit the market with lowball list prices, but the total number of new REO’s continues to trickle instead of flow. List prices continue to be lowball to get people in the door, and once in the door, multiple offers are the norm.

What I’ve experienced first hand, as well as been told by two very reliable sources in the banking industry, is the following…..Banks LOVE cash offers and will take a cash offer at list, or slightly above list (unless there are competing cash offers). If a bidding war starts on a property with numerous FHA offers, as well as 20% down offers, the banks will still take the cash offer, even if it is significantly lower than the others.

For example,,,a good friend and listing agent told me that he had a listing with 17 offers, all conventional loan/FHA. On the final day a cash offer came in at only $1K over list and was accepted. The point is, cash is king, and FHA loans are crap because of the high default rate on them.

[Bob]

As an update on what I’m seeing in the TV…

REO’s continue to hit the market with lowball list prices, but the total number of new REO’s continues to trickle instead of flow. List prices continue to be lowball to get people in the door, and once in the door, multiple offers are the norm.

What I’ve experienced first hand, as well as been told by two very reliable sources in the banking industry, is the following…..Banks LOVE cash offers and will take a cash offer at list, or slightly above list (unless there are competing cash offers). If a bidding war starts on a property with numerous FHA offers, as well as 20% down offers, the banks will still take the cash offer, even if it is significantly lower than the others.

For example,,,a good friend and listing agent told me that he had a listing with 17 offers, all conventional loan/FHA. On the final day a cash offer came in at only $1K over list and was accepted. The point is, cash is king, and FHA loans are crap because of the high default rate on them.

[Bob]

As an update on what I’m seeing in the TV…

REO’s continue to hit the market with lowball list prices, but the total number of new REO’s continues to trickle instead of flow. List prices continue to be lowball to get people in the door, and once in the door, multiple offers are the norm.

What I’ve experienced first hand, as well as been told by two very reliable sources in the banking industry, is the following…..Banks LOVE cash offers and will take a cash offer at list, or slightly above list (unless there are competing cash offers). If a bidding war starts on a property with numerous FHA offers, as well as 20% down offers, the banks will still take the cash offer, even if it is significantly lower than the others.

For example,,,a good friend and listing agent told me that he had a listing with 17 offers, all conventional loan/FHA. On the final day a cash offer came in at only $1K over list and was accepted. The point is, cash is king, and FHA loans are crap because of the high default rate on them.

[Bob]

As an update on what I’m seeing in the TV…

REO’s continue to hit the market with lowball list prices, but the total number of new REO’s continues to trickle instead of flow. List prices continue to be lowball to get people in the door, and once in the door, multiple offers are the norm.

What I’ve experienced first hand, as well as been told by two very reliable sources in the banking industry, is the following…..Banks LOVE cash offers and will take a cash offer at list, or slightly above list (unless there are competing cash offers). If a bidding war starts on a property with numerous FHA offers, as well as 20% down offers, the banks will still take the cash offer, even if it is significantly lower than the others.

For example,,,a good friend and listing agent told me that he had a listing with 17 offers, all conventional loan/FHA. On the final day a cash offer came in at only $1K over list and was accepted. The point is, cash is king, and FHA loans are crap because of the high default rate on them.

[Author]

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