[HLS]

WB..
I can tell you that you can get approved to carry more debt than you should be comfortable having.
The system wants you to be in debt…

I don’t think that there is a maximum ratio that is right for everyone. The more income you have the more dollars you have leftover, so a person with $3000 a month with a 50% ratio only has $1500 (gross) left, but someone with $5000 a month has $2500 a month leftover… Their net living expenses may be very similar.

You get approved based on gross income. You just need to know what you are comfortable with, and only factor in your tax benefit if you want to, otherwise it’s a bonus.

If you have fixed income, In general, I wouldn’t recommend total monthly debts much higher than 40%,
including housing expenses and personal expenses.

Many people have debts between 50% & 60% of their gross income, which is basically living beyond their means. Many people take home between 70%-80% of their gross, and can’t save anything.

Yes, I own.

[HLS]

WB..
I can tell you that you can get approved to carry more debt than you should be comfortable having.
The system wants you to be in debt…

I don’t think that there is a maximum ratio that is right for everyone. The more income you have the more dollars you have leftover, so a person with $3000 a month with a 50% ratio only has $1500 (gross) left, but someone with $5000 a month has $2500 a month leftover… Their net living expenses may be very similar.

You get approved based on gross income. You just need to know what you are comfortable with, and only factor in your tax benefit if you want to, otherwise it’s a bonus.

If you have fixed income, In general, I wouldn’t recommend total monthly debts much higher than 40%,
including housing expenses and personal expenses.

Many people have debts between 50% & 60% of their gross income, which is basically living beyond their means. Many people take home between 70%-80% of their gross, and can’t save anything.

Yes, I own.

[HLS]

DWC,,

Higher home prices makes people FEEL rich,, just thinking that it’s worth more, people spend… More people already have houses than are looking to buy.

When people FEEL rich they spend money. With equity, you can borrow more, create more debt.
Govt loves the illusion.

Property taxes are higher,and people are paying them, the champagne is flowing. credit is easy, the faucet is on.
Home builders, contractors, furniture stores, used house sales people, mortgage scum, wall street gangsters all made huge amounts of money,

While only 10% can afford to buy, 75% already own.

Turn the faucet off and the well runs dry. Jobs are lost, stores are closing, BK’s and foreclosures will continue. In many areas house prices don’t need to go lower. You are way too focused on So CA, which is a thorn in the housing market…

The confidence is gone. It’s not coming back anytime soon… Most people aren’t as smart as they thought they were. Welcome to 2009, the “Greater Depression” is knocking… HLS

[HLS]

DWC,,

Higher home prices makes people FEEL rich,, just thinking that it’s worth more, people spend… More people already have houses than are looking to buy.

When people FEEL rich they spend money. With equity, you can borrow more, create more debt.
Govt loves the illusion.

Property taxes are higher,and people are paying them, the champagne is flowing. credit is easy, the faucet is on.
Home builders, contractors, furniture stores, used house sales people, mortgage scum, wall street gangsters all made huge amounts of money,

While only 10% can afford to buy, 75% already own.

Turn the faucet off and the well runs dry. Jobs are lost, stores are closing, BK’s and foreclosures will continue. In many areas house prices don’t need to go lower. You are way too focused on So CA, which is a thorn in the housing market…

The confidence is gone. It’s not coming back anytime soon… Most people aren’t as smart as they thought they were. Welcome to 2009, the “Greater Depression” is knocking… HLS

[HLS]

DWC,,

Higher home prices makes people FEEL rich,, just thinking that it’s worth more, people spend… More people already have houses than are looking to buy.

When people FEEL rich they spend money. With equity, you can borrow more, create more debt.
Govt loves the illusion.

Property taxes are higher,and people are paying them, the champagne is flowing. credit is easy, the faucet is on.
Home builders, contractors, furniture stores, used house sales people, mortgage scum, wall street gangsters all made huge amounts of money,

While only 10% can afford to buy, 75% already own.

Turn the faucet off and the well runs dry. Jobs are lost, stores are closing, BK’s and foreclosures will continue. In many areas house prices don’t need to go lower. You are way too focused on So CA, which is a thorn in the housing market…

The confidence is gone. It’s not coming back anytime soon… Most people aren’t as smart as they thought they were. Welcome to 2009, the “Greater Depression” is knocking… HLS

[HLS]

DWC,,

Higher home prices makes people FEEL rich,, just thinking that it’s worth more, people spend… More people already have houses than are looking to buy.

When people FEEL rich they spend money. With equity, you can borrow more, create more debt.
Govt loves the illusion.

Property taxes are higher,and people are paying them, the champagne is flowing. credit is easy, the faucet is on.
Home builders, contractors, furniture stores, used house sales people, mortgage scum, wall street gangsters all made huge amounts of money,

While only 10% can afford to buy, 75% already own.

Turn the faucet off and the well runs dry. Jobs are lost, stores are closing, BK’s and foreclosures will continue. In many areas house prices don’t need to go lower. You are way too focused on So CA, which is a thorn in the housing market…

The confidence is gone. It’s not coming back anytime soon… Most people aren’t as smart as they thought they were. Welcome to 2009, the “Greater Depression” is knocking… HLS

[HLS]

DWC,,

Higher home prices makes people FEEL rich,, just thinking that it’s worth more, people spend… More people already have houses than are looking to buy.

When people FEEL rich they spend money. With equity, you can borrow more, create more debt.
Govt loves the illusion.

Property taxes are higher,and people are paying them, the champagne is flowing. credit is easy, the faucet is on.
Home builders, contractors, furniture stores, used house sales people, mortgage scum, wall street gangsters all made huge amounts of money,

While only 10% can afford to buy, 75% already own.

Turn the faucet off and the well runs dry. Jobs are lost, stores are closing, BK’s and foreclosures will continue. In many areas house prices don’t need to go lower. You are way too focused on So CA, which is a thorn in the housing market…

The confidence is gone. It’s not coming back anytime soon… Most people aren’t as smart as they thought they were. Welcome to 2009, the “Greater Depression” is knocking… HLS

[HLS]

[quote=gn]HLS,

Let’s suppose that this is true. Did you ask your friend/source on the rationale behind this change ?

It seems a bit draconian to totally disregard rental income. If this is true, it will hurt FNMA because it makes moving up very hard for buyers who have plenty of equity (more than 30%) to move up.[/quote]

GN…The source is credible. Rationale doesn’t matter… It may be isolated, but it may be a new FNMA/FHLMC guideline. I will know more in about 2 weeks.

Realize what the powers are trying to accomplish. MOST people buying another home won’t become responible landlords, and even 30% equity can disappear in the near future meaning that they may walk away..

IF this is true, it tells me what “the powers” are seeing ahead, and it ISN’T pretty….

They need to TRY to maintain a solid base of “homeowners” and if that meams fewer new landlords, so be it.

For those that want to move up or down, I guess they are saying SELL what you have and then go buy.

There is a greater plan building, and it may not include bubble markets like SoCal…

People seem to forget that this is a nationwide problem, not just a Southern CA problem.

If 40+ states can have their markets stabilized and 10 states continue to drop, the govt will be thrilled.. HLS

[HLS]

[quote=gn]HLS,

Let’s suppose that this is true. Did you ask your friend/source on the rationale behind this change ?

It seems a bit draconian to totally disregard rental income. If this is true, it will hurt FNMA because it makes moving up very hard for buyers who have plenty of equity (more than 30%) to move up.[/quote]

GN…The source is credible. Rationale doesn’t matter… It may be isolated, but it may be a new FNMA/FHLMC guideline. I will know more in about 2 weeks.

Realize what the powers are trying to accomplish. MOST people buying another home won’t become responible landlords, and even 30% equity can disappear in the near future meaning that they may walk away..

IF this is true, it tells me what “the powers” are seeing ahead, and it ISN’T pretty….

They need to TRY to maintain a solid base of “homeowners” and if that meams fewer new landlords, so be it.

For those that want to move up or down, I guess they are saying SELL what you have and then go buy.

There is a greater plan building, and it may not include bubble markets like SoCal…

People seem to forget that this is a nationwide problem, not just a Southern CA problem.

If 40+ states can have their markets stabilized and 10 states continue to drop, the govt will be thrilled.. HLS

[HLS]

[quote=gn]HLS,

Let’s suppose that this is true. Did you ask your friend/source on the rationale behind this change ?

It seems a bit draconian to totally disregard rental income. If this is true, it will hurt FNMA because it makes moving up very hard for buyers who have plenty of equity (more than 30%) to move up.[/quote]

GN…The source is credible. Rationale doesn’t matter… It may be isolated, but it may be a new FNMA/FHLMC guideline. I will know more in about 2 weeks.

Realize what the powers are trying to accomplish. MOST people buying another home won’t become responible landlords, and even 30% equity can disappear in the near future meaning that they may walk away..

IF this is true, it tells me what “the powers” are seeing ahead, and it ISN’T pretty….

They need to TRY to maintain a solid base of “homeowners” and if that meams fewer new landlords, so be it.

For those that want to move up or down, I guess they are saying SELL what you have and then go buy.

There is a greater plan building, and it may not include bubble markets like SoCal…

People seem to forget that this is a nationwide problem, not just a Southern CA problem.

If 40+ states can have their markets stabilized and 10 states continue to drop, the govt will be thrilled.. HLS

[HLS]

[quote=gn]HLS,

Let’s suppose that this is true. Did you ask your friend/source on the rationale behind this change ?

It seems a bit draconian to totally disregard rental income. If this is true, it will hurt FNMA because it makes moving up very hard for buyers who have plenty of equity (more than 30%) to move up.[/quote]

GN…The source is credible. Rationale doesn’t matter… It may be isolated, but it may be a new FNMA/FHLMC guideline. I will know more in about 2 weeks.

Realize what the powers are trying to accomplish. MOST people buying another home won’t become responible landlords, and even 30% equity can disappear in the near future meaning that they may walk away..

IF this is true, it tells me what “the powers” are seeing ahead, and it ISN’T pretty….

They need to TRY to maintain a solid base of “homeowners” and if that meams fewer new landlords, so be it.

For those that want to move up or down, I guess they are saying SELL what you have and then go buy.

There is a greater plan building, and it may not include bubble markets like SoCal…

People seem to forget that this is a nationwide problem, not just a Southern CA problem.

If 40+ states can have their markets stabilized and 10 states continue to drop, the govt will be thrilled.. HLS

[HLS]

[quote=gn]HLS,

Let’s suppose that this is true. Did you ask your friend/source on the rationale behind this change ?

It seems a bit draconian to totally disregard rental income. If this is true, it will hurt FNMA because it makes moving up very hard for buyers who have plenty of equity (more than 30%) to move up.[/quote]

GN…The source is credible. Rationale doesn’t matter… It may be isolated, but it may be a new FNMA/FHLMC guideline. I will know more in about 2 weeks.

Realize what the powers are trying to accomplish. MOST people buying another home won’t become responible landlords, and even 30% equity can disappear in the near future meaning that they may walk away..

IF this is true, it tells me what “the powers” are seeing ahead, and it ISN’T pretty….

They need to TRY to maintain a solid base of “homeowners” and if that meams fewer new landlords, so be it.

For those that want to move up or down, I guess they are saying SELL what you have and then go buy.

There is a greater plan building, and it may not include bubble markets like SoCal…

People seem to forget that this is a nationwide problem, not just a Southern CA problem.

If 40+ states can have their markets stabilized and 10 states continue to drop, the govt will be thrilled.. HLS

[HLS]

Of course, you ask a great question…

1) Think about what the govt wants to accomplish.

2) Imagine if there was NO financing available for houses,, if people had to actually save money and pay cash,, obviously prices would be much lower than where they are
2a) Imagine if 50% down payment was required, houses would sell for more than #2 above
2b) Imagine if 20% down were required, with 80% financing.. you would have an orderly functioning market, with prices NEEDING to be affordable, and creating market prices higher than 2a.
2c) Allow 100% financing AND stated income loans and you create the biggest market bubble in the history of the world, which ultimately leads to the biggest economic meltdown in history.
People don’t care what they pay, they have nothing invested..

Manipulating the availability of financing manipulates the prices, directly AND indirectly.

Allowing non owner pricing allows more property to be sold which benefits the govt in many ways.

Having property be UNaffordable to many and keeping prices lower DOES NOT benefit the govt.

This is not conspiracy, this is FACT.

Think about which is better for the economy, thus better for the govt and what their goals, desires and motives are… It all makes total sense.

FHA is creating the new subprime market.. HLS

[HLS]

Of course, you ask a great question…

1) Think about what the govt wants to accomplish.

2) Imagine if there was NO financing available for houses,, if people had to actually save money and pay cash,, obviously prices would be much lower than where they are
2a) Imagine if 50% down payment was required, houses would sell for more than #2 above
2b) Imagine if 20% down were required, with 80% financing.. you would have an orderly functioning market, with prices NEEDING to be affordable, and creating market prices higher than 2a.
2c) Allow 100% financing AND stated income loans and you create the biggest market bubble in the history of the world, which ultimately leads to the biggest economic meltdown in history.
People don’t care what they pay, they have nothing invested..

Manipulating the availability of financing manipulates the prices, directly AND indirectly.

Allowing non owner pricing allows more property to be sold which benefits the govt in many ways.

Having property be UNaffordable to many and keeping prices lower DOES NOT benefit the govt.

This is not conspiracy, this is FACT.

Think about which is better for the economy, thus better for the govt and what their goals, desires and motives are… It all makes total sense.

FHA is creating the new subprime market.. HLS

[HLS]

Of course, you ask a great question…

1) Think about what the govt wants to accomplish.

2) Imagine if there was NO financing available for houses,, if people had to actually save money and pay cash,, obviously prices would be much lower than where they are
2a) Imagine if 50% down payment was required, houses would sell for more than #2 above
2b) Imagine if 20% down were required, with 80% financing.. you would have an orderly functioning market, with prices NEEDING to be affordable, and creating market prices higher than 2a.
2c) Allow 100% financing AND stated income loans and you create the biggest market bubble in the history of the world, which ultimately leads to the biggest economic meltdown in history.
People don’t care what they pay, they have nothing invested..

Manipulating the availability of financing manipulates the prices, directly AND indirectly.

Allowing non owner pricing allows more property to be sold which benefits the govt in many ways.

Having property be UNaffordable to many and keeping prices lower DOES NOT benefit the govt.

This is not conspiracy, this is FACT.

Think about which is better for the economy, thus better for the govt and what their goals, desires and motives are… It all makes total sense.

FHA is creating the new subprime market.. HLS

[Author]

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