[Raybyrnes]

Schwab also offeres a interest bearing checking account that you could open but if you are looking for short term safety I would look at a California Tax Free Muni Bond Fund. You might find the liqudity is there, and you don’t deal with paying tax on it at the end of the year. This oftentime provides a higher overall yield. If it is just over a couple of years you are looking to keep your money in this type of account consider using a no load fund or consider C shares of a loaded fund. Good Luck

[Raybyrnes]

Schwab also offeres a interest bearing checking account that you could open but if you are looking for short term safety I would look at a California Tax Free Muni Bond Fund. You might find the liqudity is there, and you don’t deal with paying tax on it at the end of the year. This oftentime provides a higher overall yield. If it is just over a couple of years you are looking to keep your money in this type of account consider using a no load fund or consider C shares of a loaded fund. Good Luck

[Raybyrnes]

Schwab also offeres a interest bearing checking account that you could open but if you are looking for short term safety I would look at a California Tax Free Muni Bond Fund. You might find the liqudity is there, and you don’t deal with paying tax on it at the end of the year. This oftentime provides a higher overall yield. If it is just over a couple of years you are looking to keep your money in this type of account consider using a no load fund or consider C shares of a loaded fund. Good Luck

[Raybyrnes]

Schwab also offeres a interest bearing checking account that you could open but if you are looking for short term safety I would look at a California Tax Free Muni Bond Fund. You might find the liqudity is there, and you don’t deal with paying tax on it at the end of the year. This oftentime provides a higher overall yield. If it is just over a couple of years you are looking to keep your money in this type of account consider using a no load fund or consider C shares of a loaded fund. Good Luck

[Raybyrnes]

Schwab also offeres a interest bearing checking account that you could open but if you are looking for short term safety I would look at a California Tax Free Muni Bond Fund. You might find the liqudity is there, and you don’t deal with paying tax on it at the end of the year. This oftentime provides a higher overall yield. If it is just over a couple of years you are looking to keep your money in this type of account consider using a no load fund or consider C shares of a loaded fund. Good Luck

[Raybyrnes]

JWM in SD

“However, if the Govt becomes the primary source for lending as many seem to think is going happen since it may become too risky for private lenders to continue to thrive as they have been, then all bets are off….at that point we are in really deep shit.”

Let’s look at a smaller program that parallels the mortgage industry the Student Loan Industry. Right now 3 companies in San Diego have shut their doors. Ted Kennedy promised that the increase in Pell grant money would not cost the american public a dollar. They would take 20 billion from Private lenders and there would be no response. Right now they are using tax payer money to fund guaranteeing agencies as FFELP Lenders exit the origination side of student lending. Previous discounts for auto pay and on time payments have been eliminated. There fore the cost ofthese loansis not less but more.

The student loan industry is about 90 billion so it is really chump change compared to the mortgage industry but there appears to be movement in the same direction.

I would expect to see many lenders exit the originatin side and I would expect incompetency and laziness to funnel its way into government burocracy.

This has all been fairly well orchestrated by the Democratic Party in an effort to consolidate student lending into the Direct Loan Program. It is suppose to cost us less but in realiy is going to cost student and taxpayers far more.

[Raybyrnes]

JWM in SD

“However, if the Govt becomes the primary source for lending as many seem to think is going happen since it may become too risky for private lenders to continue to thrive as they have been, then all bets are off….at that point we are in really deep shit.”

Let’s look at a smaller program that parallels the mortgage industry the Student Loan Industry. Right now 3 companies in San Diego have shut their doors. Ted Kennedy promised that the increase in Pell grant money would not cost the american public a dollar. They would take 20 billion from Private lenders and there would be no response. Right now they are using tax payer money to fund guaranteeing agencies as FFELP Lenders exit the origination side of student lending. Previous discounts for auto pay and on time payments have been eliminated. There fore the cost ofthese loansis not less but more.

The student loan industry is about 90 billion so it is really chump change compared to the mortgage industry but there appears to be movement in the same direction.

I would expect to see many lenders exit the originatin side and I would expect incompetency and laziness to funnel its way into government burocracy.

This has all been fairly well orchestrated by the Democratic Party in an effort to consolidate student lending into the Direct Loan Program. It is suppose to cost us less but in realiy is going to cost student and taxpayers far more.

[Raybyrnes]

JWM in SD

“However, if the Govt becomes the primary source for lending as many seem to think is going happen since it may become too risky for private lenders to continue to thrive as they have been, then all bets are off….at that point we are in really deep shit.”

Let’s look at a smaller program that parallels the mortgage industry the Student Loan Industry. Right now 3 companies in San Diego have shut their doors. Ted Kennedy promised that the increase in Pell grant money would not cost the american public a dollar. They would take 20 billion from Private lenders and there would be no response. Right now they are using tax payer money to fund guaranteeing agencies as FFELP Lenders exit the origination side of student lending. Previous discounts for auto pay and on time payments have been eliminated. There fore the cost ofthese loansis not less but more.

The student loan industry is about 90 billion so it is really chump change compared to the mortgage industry but there appears to be movement in the same direction.

I would expect to see many lenders exit the originatin side and I would expect incompetency and laziness to funnel its way into government burocracy.

This has all been fairly well orchestrated by the Democratic Party in an effort to consolidate student lending into the Direct Loan Program. It is suppose to cost us less but in realiy is going to cost student and taxpayers far more.

[Raybyrnes]

JWM in SD

“However, if the Govt becomes the primary source for lending as many seem to think is going happen since it may become too risky for private lenders to continue to thrive as they have been, then all bets are off….at that point we are in really deep shit.”

Let’s look at a smaller program that parallels the mortgage industry the Student Loan Industry. Right now 3 companies in San Diego have shut their doors. Ted Kennedy promised that the increase in Pell grant money would not cost the american public a dollar. They would take 20 billion from Private lenders and there would be no response. Right now they are using tax payer money to fund guaranteeing agencies as FFELP Lenders exit the origination side of student lending. Previous discounts for auto pay and on time payments have been eliminated. There fore the cost ofthese loansis not less but more.

The student loan industry is about 90 billion so it is really chump change compared to the mortgage industry but there appears to be movement in the same direction.

I would expect to see many lenders exit the originatin side and I would expect incompetency and laziness to funnel its way into government burocracy.

This has all been fairly well orchestrated by the Democratic Party in an effort to consolidate student lending into the Direct Loan Program. It is suppose to cost us less but in realiy is going to cost student and taxpayers far more.

[Raybyrnes]

JWM in SD

“However, if the Govt becomes the primary source for lending as many seem to think is going happen since it may become too risky for private lenders to continue to thrive as they have been, then all bets are off….at that point we are in really deep shit.”

Let’s look at a smaller program that parallels the mortgage industry the Student Loan Industry. Right now 3 companies in San Diego have shut their doors. Ted Kennedy promised that the increase in Pell grant money would not cost the american public a dollar. They would take 20 billion from Private lenders and there would be no response. Right now they are using tax payer money to fund guaranteeing agencies as FFELP Lenders exit the origination side of student lending. Previous discounts for auto pay and on time payments have been eliminated. There fore the cost ofthese loansis not less but more.

The student loan industry is about 90 billion so it is really chump change compared to the mortgage industry but there appears to be movement in the same direction.

I would expect to see many lenders exit the originatin side and I would expect incompetency and laziness to funnel its way into government burocracy.

This has all been fairly well orchestrated by the Democratic Party in an effort to consolidate student lending into the Direct Loan Program. It is suppose to cost us less but in realiy is going to cost student and taxpayers far more.

[Raybyrnes]

HUD Ends Most Down Payment Assistance Programs!!
Down Payment Assistance Programs. You know, where the seller makes a donation to a ‘charity’…. and that charity turns around and ‘gifts’ those monies to the buyer to satisfy the 3% Down Payment requirement on FHA loans. Well, effective October 31st, 2007(see exception below) these programs will be GONE!!

Monday October 1, 2007 HUD has ruled on what I considered the most ridiculous loophole affecting their programs.

The final rule establishes that a prohibited source of Down Payment Assistance(DPA) is a payment that consists, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale:

1. The seller
2. Any other person or entity that financially benefits from the transaction
3. Any third party or entity that is reimbursed directly or indirectly by the seller

The above exclusions seem to describe exactly what is happening when these Faux Charities are allowed to circumvent the underwriting rules using the charity loophole.

While I have been mostly neutral about the DPA, I have learned to understand its impact:
FHA, for example, allows for 6% of the contracted sales price to be rebated back to the buyer in the form of closing cost assistance. This is usually facilitated by offering more for the home in price negotiations and accepting your discount in the seller rebate. The DPA programs effectively made that 6% turn into 9% overnight. Uh, can you say ‘Over Inflated Prices’?!?!

President Bush is pushing for 100% financing on the FHA loan. So, maybe this setback for borrowers will be short lived. At least we will have a little more truth in real estate prices in the future if this is passed by legislation.

Don’t have the 3% Down Payment required? You can still get a gift from a family member or charity(a real charity) or even a State, County or Local Down Payment Assistance Program from the government.

You can read the Department of Housing and Urban Development’s full ruling here=> HUD Ends Most Down Payment Assistance Programs

Exception: It appears that Nehemia program is grandfathered in until March 31, 2008 as the result of an earlier lawsuit with HUD settled in April 1998.

[Raybyrnes]

HUD Ends Most Down Payment Assistance Programs!!
Down Payment Assistance Programs. You know, where the seller makes a donation to a ‘charity’…. and that charity turns around and ‘gifts’ those monies to the buyer to satisfy the 3% Down Payment requirement on FHA loans. Well, effective October 31st, 2007(see exception below) these programs will be GONE!!

Monday October 1, 2007 HUD has ruled on what I considered the most ridiculous loophole affecting their programs.

The final rule establishes that a prohibited source of Down Payment Assistance(DPA) is a payment that consists, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale:

1. The seller
2. Any other person or entity that financially benefits from the transaction
3. Any third party or entity that is reimbursed directly or indirectly by the seller

The above exclusions seem to describe exactly what is happening when these Faux Charities are allowed to circumvent the underwriting rules using the charity loophole.

While I have been mostly neutral about the DPA, I have learned to understand its impact:
FHA, for example, allows for 6% of the contracted sales price to be rebated back to the buyer in the form of closing cost assistance. This is usually facilitated by offering more for the home in price negotiations and accepting your discount in the seller rebate. The DPA programs effectively made that 6% turn into 9% overnight. Uh, can you say ‘Over Inflated Prices’?!?!

President Bush is pushing for 100% financing on the FHA loan. So, maybe this setback for borrowers will be short lived. At least we will have a little more truth in real estate prices in the future if this is passed by legislation.

Don’t have the 3% Down Payment required? You can still get a gift from a family member or charity(a real charity) or even a State, County or Local Down Payment Assistance Program from the government.

You can read the Department of Housing and Urban Development’s full ruling here=> HUD Ends Most Down Payment Assistance Programs

Exception: It appears that Nehemia program is grandfathered in until March 31, 2008 as the result of an earlier lawsuit with HUD settled in April 1998.

[Raybyrnes]

HUD Ends Most Down Payment Assistance Programs!!
Down Payment Assistance Programs. You know, where the seller makes a donation to a ‘charity’…. and that charity turns around and ‘gifts’ those monies to the buyer to satisfy the 3% Down Payment requirement on FHA loans. Well, effective October 31st, 2007(see exception below) these programs will be GONE!!

Monday October 1, 2007 HUD has ruled on what I considered the most ridiculous loophole affecting their programs.

The final rule establishes that a prohibited source of Down Payment Assistance(DPA) is a payment that consists, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale:

1. The seller
2. Any other person or entity that financially benefits from the transaction
3. Any third party or entity that is reimbursed directly or indirectly by the seller

The above exclusions seem to describe exactly what is happening when these Faux Charities are allowed to circumvent the underwriting rules using the charity loophole.

While I have been mostly neutral about the DPA, I have learned to understand its impact:
FHA, for example, allows for 6% of the contracted sales price to be rebated back to the buyer in the form of closing cost assistance. This is usually facilitated by offering more for the home in price negotiations and accepting your discount in the seller rebate. The DPA programs effectively made that 6% turn into 9% overnight. Uh, can you say ‘Over Inflated Prices’?!?!

President Bush is pushing for 100% financing on the FHA loan. So, maybe this setback for borrowers will be short lived. At least we will have a little more truth in real estate prices in the future if this is passed by legislation.

Don’t have the 3% Down Payment required? You can still get a gift from a family member or charity(a real charity) or even a State, County or Local Down Payment Assistance Program from the government.

You can read the Department of Housing and Urban Development’s full ruling here=> HUD Ends Most Down Payment Assistance Programs

Exception: It appears that Nehemia program is grandfathered in until March 31, 2008 as the result of an earlier lawsuit with HUD settled in April 1998.

[Raybyrnes]

HUD Ends Most Down Payment Assistance Programs!!
Down Payment Assistance Programs. You know, where the seller makes a donation to a ‘charity’…. and that charity turns around and ‘gifts’ those monies to the buyer to satisfy the 3% Down Payment requirement on FHA loans. Well, effective October 31st, 2007(see exception below) these programs will be GONE!!

Monday October 1, 2007 HUD has ruled on what I considered the most ridiculous loophole affecting their programs.

The final rule establishes that a prohibited source of Down Payment Assistance(DPA) is a payment that consists, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale:

1. The seller
2. Any other person or entity that financially benefits from the transaction
3. Any third party or entity that is reimbursed directly or indirectly by the seller

The above exclusions seem to describe exactly what is happening when these Faux Charities are allowed to circumvent the underwriting rules using the charity loophole.

While I have been mostly neutral about the DPA, I have learned to understand its impact:
FHA, for example, allows for 6% of the contracted sales price to be rebated back to the buyer in the form of closing cost assistance. This is usually facilitated by offering more for the home in price negotiations and accepting your discount in the seller rebate. The DPA programs effectively made that 6% turn into 9% overnight. Uh, can you say ‘Over Inflated Prices’?!?!

President Bush is pushing for 100% financing on the FHA loan. So, maybe this setback for borrowers will be short lived. At least we will have a little more truth in real estate prices in the future if this is passed by legislation.

Don’t have the 3% Down Payment required? You can still get a gift from a family member or charity(a real charity) or even a State, County or Local Down Payment Assistance Program from the government.

You can read the Department of Housing and Urban Development’s full ruling here=> HUD Ends Most Down Payment Assistance Programs

Exception: It appears that Nehemia program is grandfathered in until March 31, 2008 as the result of an earlier lawsuit with HUD settled in April 1998.

[Raybyrnes]

HUD Ends Most Down Payment Assistance Programs!!
Down Payment Assistance Programs. You know, where the seller makes a donation to a ‘charity’…. and that charity turns around and ‘gifts’ those monies to the buyer to satisfy the 3% Down Payment requirement on FHA loans. Well, effective October 31st, 2007(see exception below) these programs will be GONE!!

Monday October 1, 2007 HUD has ruled on what I considered the most ridiculous loophole affecting their programs.

The final rule establishes that a prohibited source of Down Payment Assistance(DPA) is a payment that consists, in whole or in part, of funds provided by any of the following parties before, during, or after closing of the property sale:

1. The seller
2. Any other person or entity that financially benefits from the transaction
3. Any third party or entity that is reimbursed directly or indirectly by the seller

The above exclusions seem to describe exactly what is happening when these Faux Charities are allowed to circumvent the underwriting rules using the charity loophole.

While I have been mostly neutral about the DPA, I have learned to understand its impact:
FHA, for example, allows for 6% of the contracted sales price to be rebated back to the buyer in the form of closing cost assistance. This is usually facilitated by offering more for the home in price negotiations and accepting your discount in the seller rebate. The DPA programs effectively made that 6% turn into 9% overnight. Uh, can you say ‘Over Inflated Prices’?!?!

President Bush is pushing for 100% financing on the FHA loan. So, maybe this setback for borrowers will be short lived. At least we will have a little more truth in real estate prices in the future if this is passed by legislation.

Don’t have the 3% Down Payment required? You can still get a gift from a family member or charity(a real charity) or even a State, County or Local Down Payment Assistance Program from the government.

You can read the Department of Housing and Urban Development’s full ruling here=> HUD Ends Most Down Payment Assistance Programs

Exception: It appears that Nehemia program is grandfathered in until March 31, 2008 as the result of an earlier lawsuit with HUD settled in April 1998.

[Author]

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