[the dingo]

I would agree it is misleading if the lender does not know, but money back for legit repairs has been a part of loans for years (as I remember it can be up to like 10% or something) a loan expert or realtor could answer this (comments?), plus having a seller pay points is totally legit. Basically, having the seller pay your fees is legit money in your pocket and lowers your payment a win/win for buyers. My point then being that money in hand is more attractive to buyers then a lower price, and this string was about the best way to sell a home in this market. As a recent buyer, I felt that this was relevant.

[the dingo]

I would agree it is misleading if the lender does not know, but money back for legit repairs has been a part of loans for years (as I remember it can be up to like 10% or something) a loan expert or realtor could answer this (comments?), plus having a seller pay points is totally legit. Basically, having the seller pay your fees is legit money in your pocket and lowers your payment a win/win for buyers. My point then being that money in hand is more attractive to buyers then a lower price, and this string was about the best way to sell a home in this market. As a recent buyer, I felt that this was relevant.

[the dingo]

I would agree it is misleading if the lender does not know, but money back for legit repairs has been a part of loans for years (as I remember it can be up to like 10% or something) a loan expert or realtor could answer this (comments?), plus having a seller pay points is totally legit. Basically, having the seller pay your fees is legit money in your pocket and lowers your payment a win/win for buyers. My point then being that money in hand is more attractive to buyers then a lower price, and this string was about the best way to sell a home in this market. As a recent buyer, I felt that this was relevant.

[the dingo]

I think that (legal) money back at close option is one that buyers like even more then a lower price. I know on my loan, the buyer paid into escrow. This was a mix of cash towards points and the rest in cash to pay for a furnace that was missing and a condemned fire place. The fire place I am fixing myself and I found a furnace on craigslist for free.
Thus, instead of low balling the price dramatically of the home which in the end only changes the payment by a small amount, I closed 5% off the price got 3 points paid by the buyer (13k) which dramatically lowered my payment and 8k cash for repairs that I put in towards my 6 months of reserves.
I spent 3 years waiting to buy our home and once the market started tanking, the homes that allured us the most were the ones with a price about 8% under comps with 20k or so back for one reason or another (i.e. One was a 30 year smokers house)
If I were selling right now and had some margin I would make it the lowest comp in the neighborhood and offer 20k or so in closing incentives. People like cash.

[the dingo]

I think that (legal) money back at close option is one that buyers like even more then a lower price. I know on my loan, the buyer paid into escrow. This was a mix of cash towards points and the rest in cash to pay for a furnace that was missing and a condemned fire place. The fire place I am fixing myself and I found a furnace on craigslist for free.
Thus, instead of low balling the price dramatically of the home which in the end only changes the payment by a small amount, I closed 5% off the price got 3 points paid by the buyer (13k) which dramatically lowered my payment and 8k cash for repairs that I put in towards my 6 months of reserves.
I spent 3 years waiting to buy our home and once the market started tanking, the homes that allured us the most were the ones with a price about 8% under comps with 20k or so back for one reason or another (i.e. One was a 30 year smokers house)
If I were selling right now and had some margin I would make it the lowest comp in the neighborhood and offer 20k or so in closing incentives. People like cash.

[the dingo]

I think that (legal) money back at close option is one that buyers like even more then a lower price. I know on my loan, the buyer paid into escrow. This was a mix of cash towards points and the rest in cash to pay for a furnace that was missing and a condemned fire place. The fire place I am fixing myself and I found a furnace on craigslist for free.
Thus, instead of low balling the price dramatically of the home which in the end only changes the payment by a small amount, I closed 5% off the price got 3 points paid by the buyer (13k) which dramatically lowered my payment and 8k cash for repairs that I put in towards my 6 months of reserves.
I spent 3 years waiting to buy our home and once the market started tanking, the homes that allured us the most were the ones with a price about 8% under comps with 20k or so back for one reason or another (i.e. One was a 30 year smokers house)
If I were selling right now and had some margin I would make it the lowest comp in the neighborhood and offer 20k or so in closing incentives. People like cash.

[the dingo]

I think that (legal) money back at close option is one that buyers like even more then a lower price. I know on my loan, the buyer paid into escrow. This was a mix of cash towards points and the rest in cash to pay for a furnace that was missing and a condemned fire place. The fire place I am fixing myself and I found a furnace on craigslist for free.
Thus, instead of low balling the price dramatically of the home which in the end only changes the payment by a small amount, I closed 5% off the price got 3 points paid by the buyer (13k) which dramatically lowered my payment and 8k cash for repairs that I put in towards my 6 months of reserves.
I spent 3 years waiting to buy our home and once the market started tanking, the homes that allured us the most were the ones with a price about 8% under comps with 20k or so back for one reason or another (i.e. One was a 30 year smokers house)
If I were selling right now and had some margin I would make it the lowest comp in the neighborhood and offer 20k or so in closing incentives. People like cash.

[the dingo]

I thought that the pigs would tell you to cancel Thanksgiving, due to the foreclorsure rate in the county.

[the dingo]

I thought that the pigs would tell you to cancel Thanksgiving, due to the foreclorsure rate in the county.

[the dingo]

I thought that the pigs would tell you to cancel Thanksgiving, due to the foreclorsure rate in the county.

[the dingo]

I thought that the pigs would tell you to cancel Thanksgiving, due to the foreclorsure rate in the county.

[the dingo]

Patientrenter,
First of all you are right, I am a nice person to talk to, but to be blunt, capitalism is built on getting an advantage in the system. It’s legal and it is available.
I’m not sure how me getting this loan is taking advantage of people or screwing taxpayers? Also, “overpaying” is a odd comment. Once again capitalism says that something is worth what one will pay.
And I don’t feel a loan with a 40 year track record which has allowed many low and medium income families to afford homes, which by the way would always be unaffordable for these people is a bad “crackpot scheme”. I also have a feeling if you met the criteria, you would jump on it also.

[the dingo]

Patientrenter,
First of all you are right, I am a nice person to talk to, but to be blunt, capitalism is built on getting an advantage in the system. It’s legal and it is available.
I’m not sure how me getting this loan is taking advantage of people or screwing taxpayers? Also, “overpaying” is a odd comment. Once again capitalism says that something is worth what one will pay.
And I don’t feel a loan with a 40 year track record which has allowed many low and medium income families to afford homes, which by the way would always be unaffordable for these people is a bad “crackpot scheme”. I also have a feeling if you met the criteria, you would jump on it also.

[the dingo]

Patientrenter,
First of all you are right, I am a nice person to talk to, but to be blunt, capitalism is built on getting an advantage in the system. It’s legal and it is available.
I’m not sure how me getting this loan is taking advantage of people or screwing taxpayers? Also, “overpaying” is a odd comment. Once again capitalism says that something is worth what one will pay.
And I don’t feel a loan with a 40 year track record which has allowed many low and medium income families to afford homes, which by the way would always be unaffordable for these people is a bad “crackpot scheme”. I also have a feeling if you met the criteria, you would jump on it also.

[the dingo]

According to the classes I attended, this loan was put in place by the fed in the 70’s so that banks could not do a practice called “redlining” see http://en.wikipedia.org/wiki/Redlining which in a nutshell means offering low income areas credit for high interest cards, but not credit for things like home loans and cars. Acorn was set up as a social justice organization, and when I went to the classes, I felt like I was at the democratic national convention. Pictures of Ceasar Chavez and others..
When BofA did their presentation at the class, they said that they get credits for doing these loans, and that they would not do them if the Govt. did not limit their growth ability without a certain amount of credits they get from financing a certain number of these. Thus, it is the “lost loser” car dealership pricipal where they lose money, so they can make money.
The loophole has come from the fact that immigrant workers live all over San Diego. Thus, since my area, Encinitas/ Carlsbad if full of low income workers, we qualify as an area for this loan. Since they can’t discriminate because I am white, I have gotten a loan previously unavailable.
You might ask, why would poor people need a loan of 500k? Basically, that is another loophole. The max income ratio of 90k and loan amounts of 500k are based on mathmatical equations that take in the areas medium home value and income level.
One more thing, 50% of the class was caucasian and there were at least 100 people in the class. This showed me that lots of people even back in July wanted in the market. I did not make the system, I only used it.

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