[UCGal]

[quote=scaredycat]yes, but of course all of this goes out the window if in fact FHA PMI can be cancelled after a certain number of years. wher eis that FHA guru guy who was chased off the board a while back?

also, of cours,e there has to be some return imputed to the 66K in the fha scenario , since the 80k going into the house is getting a gain imputed to it. it mightbe very low, the bank ate of interest, or itmight be higher.[/quote]

scaredycat –
The google is our friend. I was curious about this so I googled.
It appears that the MIP can be removed from the FHA loan if three conditions are met:
– The loan term is for 15 or more years.
– The MIP has been paid for 5 years.
– The Loan to Value is at least 78%.

If you’re expecting the value of the house to decline – you can’t assume you’ll qualify for the 78% LTV in the 5 years. So if you’re going with FHA for the lower down, out of fear of losing the down payment in a declining market – you should NOT count on the MIP going away since, clearly, you’re assuming a declining market and your LTV will stay high as the value goes down.
(Does that make any sense?)

http://www.ehow.com/how_4574989_mortgage-insurance-fha-year-loan.html

http://www.bills.com/fha-mortgage-insurance/

[UCGal]

[quote=scaredycat]yes, but of course all of this goes out the window if in fact FHA PMI can be cancelled after a certain number of years. wher eis that FHA guru guy who was chased off the board a while back?

also, of cours,e there has to be some return imputed to the 66K in the fha scenario , since the 80k going into the house is getting a gain imputed to it. it mightbe very low, the bank ate of interest, or itmight be higher.[/quote]

scaredycat –
The google is our friend. I was curious about this so I googled.
It appears that the MIP can be removed from the FHA loan if three conditions are met:
– The loan term is for 15 or more years.
– The MIP has been paid for 5 years.
– The Loan to Value is at least 78%.

If you’re expecting the value of the house to decline – you can’t assume you’ll qualify for the 78% LTV in the 5 years. So if you’re going with FHA for the lower down, out of fear of losing the down payment in a declining market – you should NOT count on the MIP going away since, clearly, you’re assuming a declining market and your LTV will stay high as the value goes down.
(Does that make any sense?)

http://www.ehow.com/how_4574989_mortgage-insurance-fha-year-loan.html

http://www.bills.com/fha-mortgage-insurance/

[UCGal]

[quote=scaredycat]yes, but of course all of this goes out the window if in fact FHA PMI can be cancelled after a certain number of years. wher eis that FHA guru guy who was chased off the board a while back?

also, of cours,e there has to be some return imputed to the 66K in the fha scenario , since the 80k going into the house is getting a gain imputed to it. it mightbe very low, the bank ate of interest, or itmight be higher.[/quote]

scaredycat –
The google is our friend. I was curious about this so I googled.
It appears that the MIP can be removed from the FHA loan if three conditions are met:
– The loan term is for 15 or more years.
– The MIP has been paid for 5 years.
– The Loan to Value is at least 78%.

If you’re expecting the value of the house to decline – you can’t assume you’ll qualify for the 78% LTV in the 5 years. So if you’re going with FHA for the lower down, out of fear of losing the down payment in a declining market – you should NOT count on the MIP going away since, clearly, you’re assuming a declining market and your LTV will stay high as the value goes down.
(Does that make any sense?)

http://www.ehow.com/how_4574989_mortgage-insurance-fha-year-loan.html

http://www.bills.com/fha-mortgage-insurance/

[UCGal]

[quote=briansd1]Just put in the street name on the County Tax Collector’s website after the due date and you can find out which of your neighbors are running out of wherewithal.

Look up sales history, infer loan balances and you can get a picture of street level inventory.[/quote]

It’s amusing to do that on my street.
Half of the neighbors have owned the houses for 20 years or more – so their tax rate is ultra low.

Another 5-6 of us bought from our parents and inherited the prop-13 tax rate.

Then there are the remainder – who bought in the last 7-8 years – paying a lot more. Of course some of the old timers have improved the houses and that might kick it up a bit. (We fall in that category with the companion unit.)

I guess living on a street with 45 year old houses – and many residents who are original owners makes for an interesting snapshot of the effects of prop 13.

[UCGal]

[quote=briansd1]Just put in the street name on the County Tax Collector’s website after the due date and you can find out which of your neighbors are running out of wherewithal.

Look up sales history, infer loan balances and you can get a picture of street level inventory.[/quote]

It’s amusing to do that on my street.
Half of the neighbors have owned the houses for 20 years or more – so their tax rate is ultra low.

Another 5-6 of us bought from our parents and inherited the prop-13 tax rate.

Then there are the remainder – who bought in the last 7-8 years – paying a lot more. Of course some of the old timers have improved the houses and that might kick it up a bit. (We fall in that category with the companion unit.)

I guess living on a street with 45 year old houses – and many residents who are original owners makes for an interesting snapshot of the effects of prop 13.

[UCGal]

[quote=briansd1]Just put in the street name on the County Tax Collector’s website after the due date and you can find out which of your neighbors are running out of wherewithal.

Look up sales history, infer loan balances and you can get a picture of street level inventory.[/quote]

It’s amusing to do that on my street.
Half of the neighbors have owned the houses for 20 years or more – so their tax rate is ultra low.

Another 5-6 of us bought from our parents and inherited the prop-13 tax rate.

Then there are the remainder – who bought in the last 7-8 years – paying a lot more. Of course some of the old timers have improved the houses and that might kick it up a bit. (We fall in that category with the companion unit.)

I guess living on a street with 45 year old houses – and many residents who are original owners makes for an interesting snapshot of the effects of prop 13.

[UCGal]

[quote=briansd1]Just put in the street name on the County Tax Collector’s website after the due date and you can find out which of your neighbors are running out of wherewithal.

Look up sales history, infer loan balances and you can get a picture of street level inventory.[/quote]

It’s amusing to do that on my street.
Half of the neighbors have owned the houses for 20 years or more – so their tax rate is ultra low.

Another 5-6 of us bought from our parents and inherited the prop-13 tax rate.

Then there are the remainder – who bought in the last 7-8 years – paying a lot more. Of course some of the old timers have improved the houses and that might kick it up a bit. (We fall in that category with the companion unit.)

I guess living on a street with 45 year old houses – and many residents who are original owners makes for an interesting snapshot of the effects of prop 13.

[UCGal]

[quote=briansd1]Just put in the street name on the County Tax Collector’s website after the due date and you can find out which of your neighbors are running out of wherewithal.

Look up sales history, infer loan balances and you can get a picture of street level inventory.[/quote]

It’s amusing to do that on my street.
Half of the neighbors have owned the houses for 20 years or more – so their tax rate is ultra low.

Another 5-6 of us bought from our parents and inherited the prop-13 tax rate.

Then there are the remainder – who bought in the last 7-8 years – paying a lot more. Of course some of the old timers have improved the houses and that might kick it up a bit. (We fall in that category with the companion unit.)

I guess living on a street with 45 year old houses – and many residents who are original owners makes for an interesting snapshot of the effects of prop 13.

[UCGal]

I forwarded the link to my husband. He’s going to measure tonight.

(And he fits 2 of your criteria on the ad – Architect and do-it-yourselfer, LOL.)

[UCGal]

I forwarded the link to my husband. He’s going to measure tonight.

(And he fits 2 of your criteria on the ad – Architect and do-it-yourselfer, LOL.)

[UCGal]

I forwarded the link to my husband. He’s going to measure tonight.

(And he fits 2 of your criteria on the ad – Architect and do-it-yourselfer, LOL.)

[UCGal]

I forwarded the link to my husband. He’s going to measure tonight.

(And he fits 2 of your criteria on the ad – Architect and do-it-yourselfer, LOL.)

[UCGal]

I forwarded the link to my husband. He’s going to measure tonight.

(And he fits 2 of your criteria on the ad – Architect and do-it-yourselfer, LOL.)

[UCGal]

[quote=beanmaestro]I have to admit, I don’t really follow the logic in these limits. Our expenses break down more or less as follows (well, before we bought a house)

25% taxes
35% savings
15% rent
25% other expenses

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.[/quote]

Sure – you have 50% you could spend on housing (35% savings + 15% rent)… but you’re not typical.

The 45% is based on *most* people… In other words the non-piggs that don’t save 35% of their gross income. Up until very recently the savings rate in the US was actually negative (spending more than earning)… Now it’s a few percent.

[UCGal]

[quote=beanmaestro]I have to admit, I don’t really follow the logic in these limits. Our expenses break down more or less as follows (well, before we bought a house)

25% taxes
35% savings
15% rent
25% other expenses

Other than not being stupid enough to grossly overpay for a house, I don’t see why we couldn’t spend 50%+ of our gross income on a house.[/quote]

Sure – you have 50% you could spend on housing (35% savings + 15% rent)… but you’re not typical.

The 45% is based on *most* people… In other words the non-piggs that don’t save 35% of their gross income. Up until very recently the savings rate in the US was actually negative (spending more than earning)… Now it’s a few percent.

[Author]

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