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HLS
ParticipantWe aren’t dealing with too many people who think.
FHA is the new subprime. Without it, the houisng market would collapse.We are dealing with a society that has an entitlement attitude and thinks that their civil rights are violated if they can’t get a mortgage.
Greed and foolishness is rampant. People think they are looked down upon if they are a renter.The wise ones have been renters the last 5-6 years and have no money in the stock market. How UNAmerican is that ?
The recent move to “address risk” at FHA was if a credit score is below 580, you need 10% down. Above 580 3.50% down is still possible, and the seller can only contribute 3% of the sales price instead of 6%.
This is a very, very, sick situation.http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/2010/HUDNo.10-016
ParticipantWay too simple to say that it adds 1.5% to the rate. It makes a 5% loan a 7% loan. It varies with the rate.
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what is the purpose of obtaining an FHA loan if the MMI is so exorbitant that it adds several hundred dollars a month onto the mtg. payment without loaning any more money?
What happened to paying the MMI premium up front??
*****
FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity.It appears that the new proposal is to pay it for 30 years if you buy with less than 10% down OR 11 years with 10% down. (the proposal is absurd)
The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.
The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”
If FHA didn’t exist, housing prices would be lower.
ParticipantWay too simple to say that it adds 1.5% to the rate. It makes a 5% loan a 7% loan. It varies with the rate.
***************
what is the purpose of obtaining an FHA loan if the MMI is so exorbitant that it adds several hundred dollars a month onto the mtg. payment without loaning any more money?
What happened to paying the MMI premium up front??
*****
FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity.It appears that the new proposal is to pay it for 30 years if you buy with less than 10% down OR 11 years with 10% down. (the proposal is absurd)
The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.
The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”
If FHA didn’t exist, housing prices would be lower.
ParticipantWay too simple to say that it adds 1.5% to the rate. It makes a 5% loan a 7% loan. It varies with the rate.
***************
what is the purpose of obtaining an FHA loan if the MMI is so exorbitant that it adds several hundred dollars a month onto the mtg. payment without loaning any more money?
What happened to paying the MMI premium up front??
*****
FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity.It appears that the new proposal is to pay it for 30 years if you buy with less than 10% down OR 11 years with 10% down. (the proposal is absurd)
The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.
The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”
If FHA didn’t exist, housing prices would be lower.
ParticipantWay too simple to say that it adds 1.5% to the rate. It makes a 5% loan a 7% loan. It varies with the rate.
***************
what is the purpose of obtaining an FHA loan if the MMI is so exorbitant that it adds several hundred dollars a month onto the mtg. payment without loaning any more money?
What happened to paying the MMI premium up front??
*****
FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity.It appears that the new proposal is to pay it for 30 years if you buy with less than 10% down OR 11 years with 10% down. (the proposal is absurd)
The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.
The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”
If FHA didn’t exist, housing prices would be lower.
ParticipantWay too simple to say that it adds 1.5% to the rate. It makes a 5% loan a 7% loan. It varies with the rate.
***************
what is the purpose of obtaining an FHA loan if the MMI is so exorbitant that it adds several hundred dollars a month onto the mtg. payment without loaning any more money?
What happened to paying the MMI premium up front??
*****
FHA is the ONLY game in town with a crappy credit score. With only 5% down you need 700+ with F/F.
FHA will allow much lower scores but you will also pay 2.25% funding fee up fron with FHA.
The funding fee can be added to the 96.50% loan.
The MI will be paid over the life of the loan. On any FHA loan MI is currently mandatory for 5 years, regardless of equity.It appears that the new proposal is to pay it for 30 years if you buy with less than 10% down OR 11 years with 10% down. (the proposal is absurd)
The purpose ? To sell homes to foolish people who don’t realize that they are overpaying because this idiotic financing is available.
The govt relies on uneducated, financially illiterate homebuyers to keep the Ponzi scheme going.
Why else would they limit loan mods to 31% of income BUT approve new buyers at up to 50% of their income? Only to stretch out the fall in prices, expecting a large % to default in the future.F/F are losing billions, FHA cannot be far behind. Most FHA losses are being covered up like cat poop in a litter box. 100% of the losses are on loans originated in the last 5 years, but an easy modification avoids booking the loss. Extend and pretend. Perpetuate the myth.
The American dream has turned into a nightmare for many. George Carlin said it best, “You’d have to be asleep to believe it”
If FHA didn’t exist, housing prices would be lower.
ParticipantBG.
The OP didn’t mention what the dollars needed are.
It is possible to get F/F at zero cost, depending on the loan amount. 30 YR Fixed no cost loans are as low as 4.75% today.
I would rarely suggest a F/F unless at least $100K was needed, and may still not be worth it.For a small amount, absolutley go the HELOC route.
If the family needs large money out for other purposes, that’s a different story.
I would not suggest a reverse for a small amount either.I have worked with seniors who wanted to help their kids/grandkids out by refinancing. They understood the risks but wanted to help their family while they were still alive instead of watching them struggle until after they passed away.
There are some estate planning strategies that can be accomplished through refi’s as well. Just my 2c
ParticipantBG.
The OP didn’t mention what the dollars needed are.
It is possible to get F/F at zero cost, depending on the loan amount. 30 YR Fixed no cost loans are as low as 4.75% today.
I would rarely suggest a F/F unless at least $100K was needed, and may still not be worth it.For a small amount, absolutley go the HELOC route.
If the family needs large money out for other purposes, that’s a different story.
I would not suggest a reverse for a small amount either.I have worked with seniors who wanted to help their kids/grandkids out by refinancing. They understood the risks but wanted to help their family while they were still alive instead of watching them struggle until after they passed away.
There are some estate planning strategies that can be accomplished through refi’s as well. Just my 2c
ParticipantBG.
The OP didn’t mention what the dollars needed are.
It is possible to get F/F at zero cost, depending on the loan amount. 30 YR Fixed no cost loans are as low as 4.75% today.
I would rarely suggest a F/F unless at least $100K was needed, and may still not be worth it.For a small amount, absolutley go the HELOC route.
If the family needs large money out for other purposes, that’s a different story.
I would not suggest a reverse for a small amount either.I have worked with seniors who wanted to help their kids/grandkids out by refinancing. They understood the risks but wanted to help their family while they were still alive instead of watching them struggle until after they passed away.
There are some estate planning strategies that can be accomplished through refi’s as well. Just my 2c
ParticipantBG.
The OP didn’t mention what the dollars needed are.
It is possible to get F/F at zero cost, depending on the loan amount. 30 YR Fixed no cost loans are as low as 4.75% today.
I would rarely suggest a F/F unless at least $100K was needed, and may still not be worth it.For a small amount, absolutley go the HELOC route.
If the family needs large money out for other purposes, that’s a different story.
I would not suggest a reverse for a small amount either.I have worked with seniors who wanted to help their kids/grandkids out by refinancing. They understood the risks but wanted to help their family while they were still alive instead of watching them struggle until after they passed away.
There are some estate planning strategies that can be accomplished through refi’s as well. Just my 2c
ParticipantBG.
The OP didn’t mention what the dollars needed are.
It is possible to get F/F at zero cost, depending on the loan amount. 30 YR Fixed no cost loans are as low as 4.75% today.
I would rarely suggest a F/F unless at least $100K was needed, and may still not be worth it.For a small amount, absolutley go the HELOC route.
If the family needs large money out for other purposes, that’s a different story.
I would not suggest a reverse for a small amount either.I have worked with seniors who wanted to help their kids/grandkids out by refinancing. They understood the risks but wanted to help their family while they were still alive instead of watching them struggle until after they passed away.
There are some estate planning strategies that can be accomplished through refi’s as well. Just my 2c
ParticipantRich is correct about HELOCS being adjustable rates and reverse m’s are fixed, but the fees can be obscene on reverse and heirs can lose the property through complications.
If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.
A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.
With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.
ParticipantRich is correct about HELOCS being adjustable rates and reverse m’s are fixed, but the fees can be obscene on reverse and heirs can lose the property through complications.
If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.
A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.
With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.
ParticipantRich is correct about HELOCS being adjustable rates and reverse m’s are fixed, but the fees can be obscene on reverse and heirs can lose the property through complications.
If a senior doesn’t have any debt other than their housing expense, they may be able to qualify for a Fannie/Freddie mortgage with SSI and take the cash out that they will need, and have low payments over time.
A 7YR ARM will offer a lower rate than a 30YR fixed but can be harder to qualify for. Depends on how much cash they need.
With a reverse OR F/F the debt remains upon death, but heirs wont lose the house as easily OR if a nursing home is involved.
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