[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.

[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.

[the dingo]

Thanks for all the interesting feedback, constructive and vindictive. As we all know, no one loan is good for everybody. Yes, our payments are 2450, and with insurance, that is $3000 per month. We are right at the 90k limit, which still gives us heaps to live on, as we have zero debt.
Rentals in my neighborhood, La Costa are at 2100-2400 for the same model, so minus the tax, my loan is the same I would pay for rent.
The reason I liked the loan was that it gives me the security of the locked in rate, but I could easily refi at anytime once the market gets back to a more normal place. And to the comment, you can’t afford that loan. It is not the price, but the terms. 10 years is a long time away. This is not a three year ARM. Everyone is all negative to the interest only loans now, but they are still a great tool if used wisely. P.S. And where else can you get the whole loan on one mortgage without an outrageous 2nd in the 8%+ range

[the dingo]

Thanks for all the interesting feedback, constructive and vindictive. As we all know, no one loan is good for everybody. Yes, our payments are 2450, and with insurance, that is $3000 per month. We are right at the 90k limit, which still gives us heaps to live on, as we have zero debt.
Rentals in my neighborhood, La Costa are at 2100-2400 for the same model, so minus the tax, my loan is the same I would pay for rent.
The reason I liked the loan was that it gives me the security of the locked in rate, but I could easily refi at anytime once the market gets back to a more normal place. And to the comment, you can’t afford that loan. It is not the price, but the terms. 10 years is a long time away. This is not a three year ARM. Everyone is all negative to the interest only loans now, but they are still a great tool if used wisely. P.S. And where else can you get the whole loan on one mortgage without an outrageous 2nd in the 8%+ range

[the dingo]

Thanks for all the interesting feedback, constructive and vindictive. As we all know, no one loan is good for everybody. Yes, our payments are 2450, and with insurance, that is $3000 per month. We are right at the 90k limit, which still gives us heaps to live on, as we have zero debt.
Rentals in my neighborhood, La Costa are at 2100-2400 for the same model, so minus the tax, my loan is the same I would pay for rent.
The reason I liked the loan was that it gives me the security of the locked in rate, but I could easily refi at anytime once the market gets back to a more normal place. And to the comment, you can’t afford that loan. It is not the price, but the terms. 10 years is a long time away. This is not a three year ARM. Everyone is all negative to the interest only loans now, but they are still a great tool if used wisely. P.S. And where else can you get the whole loan on one mortgage without an outrageous 2nd in the 8%+ range

[the dingo]

Check out acornhousing.org this is a non profit group that I just got a loan from. Believe it or not I got the following loan. 475k 100% financing, no pmi on a 40 year fixed with the first 10 years interest only. It is not an 80/20 it is all on one loan.
Here are the stipulations. You can’t make over 90k per year. You must attend two 3 hour counseling classes. It is full doc. There is also a program called the cadat, where the state of california pays three points to lower your rate even further. Also, this loan is not based on credit score at all. The only stipulation is that you cannot have a late payment in the last 12 months. I know this sounds amazing, and it is. With out it I could not have gotten my new home. The loans are serviced by BofA, so it is solid. They also do refi’s My loan officer was a gal call cori Fusselman.

[the dingo]

Check out acornhousing.org this is a non profit group that I just got a loan from. Believe it or not I got the following loan. 475k 100% financing, no pmi on a 40 year fixed with the first 10 years interest only. It is not an 80/20 it is all on one loan.
Here are the stipulations. You can’t make over 90k per year. You must attend two 3 hour counseling classes. It is full doc. There is also a program called the cadat, where the state of california pays three points to lower your rate even further. Also, this loan is not based on credit score at all. The only stipulation is that you cannot have a late payment in the last 12 months. I know this sounds amazing, and it is. With out it I could not have gotten my new home. The loans are serviced by BofA, so it is solid. They also do refi’s My loan officer was a gal call cori Fusselman.

[the dingo]

Check out acornhousing.org this is a non profit group that I just got a loan from. Believe it or not I got the following loan. 475k 100% financing, no pmi on a 40 year fixed with the first 10 years interest only. It is not an 80/20 it is all on one loan.
Here are the stipulations. You can’t make over 90k per year. You must attend two 3 hour counseling classes. It is full doc. There is also a program called the cadat, where the state of california pays three points to lower your rate even further. Also, this loan is not based on credit score at all. The only stipulation is that you cannot have a late payment in the last 12 months. I know this sounds amazing, and it is. With out it I could not have gotten my new home. The loans are serviced by BofA, so it is solid. They also do refi’s My loan officer was a gal call cori Fusselman.

[the dingo]

Encinitas is the call, and there are lot’s of places in the 550-600 range single family that you could get below 550 if you are good at negotiation. People are willing to bargain right now. Leaver early and miss the traffic.

[the dingo]

Encinitas is the call, and there are lot’s of places in the 550-600 range single family that you could get below 550 if you are good at negotiation. People are willing to bargain right now. Leaver early and miss the traffic.

[the dingo]

Encinitas is the call, and there are lot’s of places in the 550-600 range single family that you could get below 550 if you are good at negotiation. People are willing to bargain right now. Leaver early and miss the traffic.

[the dingo]

Let me preface that by saying that my wife and I don’t have any car payments, and we live off the envelope budget system. Maybe my estimation would be less accurate when speaking of people who have double car payments.We also have zero debt service.

[the dingo]

Let me preface that by saying that my wife and I don’t have any car payments, and we live off the envelope budget system. Maybe my estimation would be less accurate when speaking of people who have double car payments.We also have zero debt service.

[the dingo]

Let me preface that by saying that my wife and I don’t have any car payments, and we live off the envelope budget system. Maybe my estimation would be less accurate when speaking of people who have double car payments.We also have zero debt service.

[the dingo]

Sdrealtor knows their stuff. That is correct, that we don’t have HOA in La Costa. Plus, no pmi. My loan is 40 year fixed with a 10 year interest only period. My loan is held by BOFA (Full Doc).
My only point earlier being that for most people working and clearing 80-110k, (which by the way are a lot of familes) home ownership is not that far off from affordability.
Would most of you agree that if you could get a single fam home in an area like Encinitas for 550k (and if they are listed at 550, you know that you can get one for 510-525) and a payment of between $3500-$3800 (tax included) that many people would see that as affordable?

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