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TheBreeze
ParticipantHmmm … it does indeed look like there is a way to get a zero-down loan through FHA:
“On Sept. 28, the Housing and Urban Development issued its final rule regarding the use of seller-funded down payment assistance programs. This ruling stated that, effective Oct. 31, HUD would prohibit the use of down payment assistance programs that, in whole or in part, consists of funds provided by any of the following parties before, during or after closing of the property sale: the seller or any other person or entity that financially benefits from the transaction; any third party or entity that is reimbursed directly or indirectly by the seller; or any other person or entity that financially benefits from the transaction.
At that point in time, in order for a homebuyer to use a gift that was derived from the seller, they must have entered into a contract to sell and the contract must have been fully executed and the offer accepted before that date. The Nehemiah Program was excluded from the Oct. 31 date because of a settlement agreement entered into between the Nehemiah and HUD in April 1998. The Nehemiah Program was permitted to go until March 31.
As a result of the ruling making these assistance programs void and leaving homebuyers without down payment assistance, organizations such as AmeriDream and Nehemiah immediately filed lawsuits in Federal Court to challenge the merits of HUD’s rule and seek an injunction blocking the implementation of this rule. On Nov. 1, FHA sent notification that the U.S. District Court now has forbidden FHA to implement the discontinuance of down payment assistance programs. In other words, until further notice, down payment assistance is alive and well.”
http://www.newarkadvocate.com/apps/pbcs.dll/article?AID=/20080119/NEWS01/801190374/1002
Thank God the government is still guaranteeing zero-down loans.
ParticipantHmmm … it does indeed look like there is a way to get a zero-down loan through FHA:
“On Sept. 28, the Housing and Urban Development issued its final rule regarding the use of seller-funded down payment assistance programs. This ruling stated that, effective Oct. 31, HUD would prohibit the use of down payment assistance programs that, in whole or in part, consists of funds provided by any of the following parties before, during or after closing of the property sale: the seller or any other person or entity that financially benefits from the transaction; any third party or entity that is reimbursed directly or indirectly by the seller; or any other person or entity that financially benefits from the transaction.
At that point in time, in order for a homebuyer to use a gift that was derived from the seller, they must have entered into a contract to sell and the contract must have been fully executed and the offer accepted before that date. The Nehemiah Program was excluded from the Oct. 31 date because of a settlement agreement entered into between the Nehemiah and HUD in April 1998. The Nehemiah Program was permitted to go until March 31.
As a result of the ruling making these assistance programs void and leaving homebuyers without down payment assistance, organizations such as AmeriDream and Nehemiah immediately filed lawsuits in Federal Court to challenge the merits of HUD’s rule and seek an injunction blocking the implementation of this rule. On Nov. 1, FHA sent notification that the U.S. District Court now has forbidden FHA to implement the discontinuance of down payment assistance programs. In other words, until further notice, down payment assistance is alive and well.”
http://www.newarkadvocate.com/apps/pbcs.dll/article?AID=/20080119/NEWS01/801190374/1002
Thank God the government is still guaranteeing zero-down loans.
ParticipantHmmm … it does indeed look like there is a way to get a zero-down loan through FHA:
“On Sept. 28, the Housing and Urban Development issued its final rule regarding the use of seller-funded down payment assistance programs. This ruling stated that, effective Oct. 31, HUD would prohibit the use of down payment assistance programs that, in whole or in part, consists of funds provided by any of the following parties before, during or after closing of the property sale: the seller or any other person or entity that financially benefits from the transaction; any third party or entity that is reimbursed directly or indirectly by the seller; or any other person or entity that financially benefits from the transaction.
At that point in time, in order for a homebuyer to use a gift that was derived from the seller, they must have entered into a contract to sell and the contract must have been fully executed and the offer accepted before that date. The Nehemiah Program was excluded from the Oct. 31 date because of a settlement agreement entered into between the Nehemiah and HUD in April 1998. The Nehemiah Program was permitted to go until March 31.
As a result of the ruling making these assistance programs void and leaving homebuyers without down payment assistance, organizations such as AmeriDream and Nehemiah immediately filed lawsuits in Federal Court to challenge the merits of HUD’s rule and seek an injunction blocking the implementation of this rule. On Nov. 1, FHA sent notification that the U.S. District Court now has forbidden FHA to implement the discontinuance of down payment assistance programs. In other words, until further notice, down payment assistance is alive and well.”
http://www.newarkadvocate.com/apps/pbcs.dll/article?AID=/20080119/NEWS01/801190374/1002
Thank God the government is still guaranteeing zero-down loans.
ParticipantHmmm … it does indeed look like there is a way to get a zero-down loan through FHA:
“On Sept. 28, the Housing and Urban Development issued its final rule regarding the use of seller-funded down payment assistance programs. This ruling stated that, effective Oct. 31, HUD would prohibit the use of down payment assistance programs that, in whole or in part, consists of funds provided by any of the following parties before, during or after closing of the property sale: the seller or any other person or entity that financially benefits from the transaction; any third party or entity that is reimbursed directly or indirectly by the seller; or any other person or entity that financially benefits from the transaction.
At that point in time, in order for a homebuyer to use a gift that was derived from the seller, they must have entered into a contract to sell and the contract must have been fully executed and the offer accepted before that date. The Nehemiah Program was excluded from the Oct. 31 date because of a settlement agreement entered into between the Nehemiah and HUD in April 1998. The Nehemiah Program was permitted to go until March 31.
As a result of the ruling making these assistance programs void and leaving homebuyers without down payment assistance, organizations such as AmeriDream and Nehemiah immediately filed lawsuits in Federal Court to challenge the merits of HUD’s rule and seek an injunction blocking the implementation of this rule. On Nov. 1, FHA sent notification that the U.S. District Court now has forbidden FHA to implement the discontinuance of down payment assistance programs. In other words, until further notice, down payment assistance is alive and well.”
http://www.newarkadvocate.com/apps/pbcs.dll/article?AID=/20080119/NEWS01/801190374/1002
Thank God the government is still guaranteeing zero-down loans.
February 10, 2008 at 12:51 PM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #150849ParticipantHere’s some data:
“According to a Fitch Ratings report, nearly 90 percent of the borrowers who took out an Option ARM in 2006 were suffering from negative amortization. At least 60 to 80 percent of Option ARM borrowers make just the minimum payment each month, according to industry estimates.”
FB: Dammit Jim, I’m a renter not a buyer (even though I technically bought)! This is definitely going to get uglier. The housing market we had in 2005-2006 resembled the young, hot Britney. Today’s housing market resembles the current Britney. The housing market we are going to see in a couple of years will be more akin to Britney 20 years from now.
Congress just passed the whole stimulus-mortgage thingee. Bush is expected to sign it this week. However, Fannie and Freddie currently only allow refis up to 95% of Loan-to-Value. Thus, it doesn’t look like to me that any of these neg-am, Option ARM folks are going to be able to take advantage of the higher conforming loan limits.
Since this is an election year and much of Congress will soon be out campaigning, I wouldn’t expect another mortgage bill this year. I think it’ll be next year before Congress passes some new bill in an attempt to put this whole mortgage fiasco to the taxpayers. By then it may be too late. At least I hope so.
But yeah, with only 30% or so of Option ARM folks making more than the minimum payment … it’s definitely going to get uglier.
February 10, 2008 at 12:51 PM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151112ParticipantHere’s some data:
“According to a Fitch Ratings report, nearly 90 percent of the borrowers who took out an Option ARM in 2006 were suffering from negative amortization. At least 60 to 80 percent of Option ARM borrowers make just the minimum payment each month, according to industry estimates.”
FB: Dammit Jim, I’m a renter not a buyer (even though I technically bought)! This is definitely going to get uglier. The housing market we had in 2005-2006 resembled the young, hot Britney. Today’s housing market resembles the current Britney. The housing market we are going to see in a couple of years will be more akin to Britney 20 years from now.
Congress just passed the whole stimulus-mortgage thingee. Bush is expected to sign it this week. However, Fannie and Freddie currently only allow refis up to 95% of Loan-to-Value. Thus, it doesn’t look like to me that any of these neg-am, Option ARM folks are going to be able to take advantage of the higher conforming loan limits.
Since this is an election year and much of Congress will soon be out campaigning, I wouldn’t expect another mortgage bill this year. I think it’ll be next year before Congress passes some new bill in an attempt to put this whole mortgage fiasco to the taxpayers. By then it may be too late. At least I hope so.
But yeah, with only 30% or so of Option ARM folks making more than the minimum payment … it’s definitely going to get uglier.
February 10, 2008 at 12:51 PM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151118ParticipantHere’s some data:
“According to a Fitch Ratings report, nearly 90 percent of the borrowers who took out an Option ARM in 2006 were suffering from negative amortization. At least 60 to 80 percent of Option ARM borrowers make just the minimum payment each month, according to industry estimates.”
FB: Dammit Jim, I’m a renter not a buyer (even though I technically bought)! This is definitely going to get uglier. The housing market we had in 2005-2006 resembled the young, hot Britney. Today’s housing market resembles the current Britney. The housing market we are going to see in a couple of years will be more akin to Britney 20 years from now.
Congress just passed the whole stimulus-mortgage thingee. Bush is expected to sign it this week. However, Fannie and Freddie currently only allow refis up to 95% of Loan-to-Value. Thus, it doesn’t look like to me that any of these neg-am, Option ARM folks are going to be able to take advantage of the higher conforming loan limits.
Since this is an election year and much of Congress will soon be out campaigning, I wouldn’t expect another mortgage bill this year. I think it’ll be next year before Congress passes some new bill in an attempt to put this whole mortgage fiasco to the taxpayers. By then it may be too late. At least I hope so.
But yeah, with only 30% or so of Option ARM folks making more than the minimum payment … it’s definitely going to get uglier.
February 10, 2008 at 12:51 PM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151135ParticipantHere’s some data:
“According to a Fitch Ratings report, nearly 90 percent of the borrowers who took out an Option ARM in 2006 were suffering from negative amortization. At least 60 to 80 percent of Option ARM borrowers make just the minimum payment each month, according to industry estimates.”
FB: Dammit Jim, I’m a renter not a buyer (even though I technically bought)! This is definitely going to get uglier. The housing market we had in 2005-2006 resembled the young, hot Britney. Today’s housing market resembles the current Britney. The housing market we are going to see in a couple of years will be more akin to Britney 20 years from now.
Congress just passed the whole stimulus-mortgage thingee. Bush is expected to sign it this week. However, Fannie and Freddie currently only allow refis up to 95% of Loan-to-Value. Thus, it doesn’t look like to me that any of these neg-am, Option ARM folks are going to be able to take advantage of the higher conforming loan limits.
Since this is an election year and much of Congress will soon be out campaigning, I wouldn’t expect another mortgage bill this year. I think it’ll be next year before Congress passes some new bill in an attempt to put this whole mortgage fiasco to the taxpayers. By then it may be too late. At least I hope so.
But yeah, with only 30% or so of Option ARM folks making more than the minimum payment … it’s definitely going to get uglier.
February 10, 2008 at 12:51 PM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151209ParticipantHere’s some data:
“According to a Fitch Ratings report, nearly 90 percent of the borrowers who took out an Option ARM in 2006 were suffering from negative amortization. At least 60 to 80 percent of Option ARM borrowers make just the minimum payment each month, according to industry estimates.”
FB: Dammit Jim, I’m a renter not a buyer (even though I technically bought)! This is definitely going to get uglier. The housing market we had in 2005-2006 resembled the young, hot Britney. Today’s housing market resembles the current Britney. The housing market we are going to see in a couple of years will be more akin to Britney 20 years from now.
Congress just passed the whole stimulus-mortgage thingee. Bush is expected to sign it this week. However, Fannie and Freddie currently only allow refis up to 95% of Loan-to-Value. Thus, it doesn’t look like to me that any of these neg-am, Option ARM folks are going to be able to take advantage of the higher conforming loan limits.
Since this is an election year and much of Congress will soon be out campaigning, I wouldn’t expect another mortgage bill this year. I think it’ll be next year before Congress passes some new bill in an attempt to put this whole mortgage fiasco to the taxpayers. By then it may be too late. At least I hope so.
But yeah, with only 30% or so of Option ARM folks making more than the minimum payment … it’s definitely going to get uglier.
ParticipantWarren Buffet says he has a lower tax rate than his secretary. How is that fair? I say tax the hell out of the rich. Why should the middle class be forced to pay for all this corporate welfare? Answer: They shouldn’t. The super-rich have benefited most in our society and they should have the highest tax rates.
ParticipantWarren Buffet says he has a lower tax rate than his secretary. How is that fair? I say tax the hell out of the rich. Why should the middle class be forced to pay for all this corporate welfare? Answer: They shouldn’t. The super-rich have benefited most in our society and they should have the highest tax rates.
ParticipantWarren Buffet says he has a lower tax rate than his secretary. How is that fair? I say tax the hell out of the rich. Why should the middle class be forced to pay for all this corporate welfare? Answer: They shouldn’t. The super-rich have benefited most in our society and they should have the highest tax rates.
ParticipantWarren Buffet says he has a lower tax rate than his secretary. How is that fair? I say tax the hell out of the rich. Why should the middle class be forced to pay for all this corporate welfare? Answer: They shouldn’t. The super-rich have benefited most in our society and they should have the highest tax rates.
ParticipantWarren Buffet says he has a lower tax rate than his secretary. How is that fair? I say tax the hell out of the rich. Why should the middle class be forced to pay for all this corporate welfare? Answer: They shouldn’t. The super-rich have benefited most in our society and they should have the highest tax rates.
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