Comments on: HUD To Congress: We Want More — And Less http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/ The Unofficial Guide to FHA Loans & Mortgages Sat, 21 Nov 2009 05:27:38 +0000 http://wordpress.org/?v=2.6 By: mjones http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3669 mjones Thu, 28 Feb 2008 23:15:19 +0000 http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3669 People do not get a 100% loans are people who do not live in high home areas. You could up to 900k or more for just a regular 3 bedroom home in these areas. People do not get a 100% loans are people who do not live in high home areas. You could up to 900k or more for just a regular 3 bedroom home in these areas.

]]> By: Peter G. Miller http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3511 Peter G. Miller Fri, 22 Feb 2008 21:32:49 +0000 http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3511 Shannon -- One of the problems with comment boxes is that they tend to allow for only short postings. I have no doubt that like you, JJ and Dave also counsel their clients regarding budgets and other matters. Shannon –

One of the problems with comment boxes is that they tend to allow for only short postings. I have no doubt that like you, JJ and Dave also counsel their clients regarding budgets and other matters.

]]> By: shannon adams http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3508 shannon adams Fri, 22 Feb 2008 13:43:30 +0000 http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3508 J.J and Dave, I must say that you both have valid points but that they are also vague and relative to the individuals involved. As a responsible person and aside from being a loan originator, I "ALWAYS" make sure the customers understand that the P.I.T.I. is not the only expense they will incur as a "Homeowner". A home is like a child in the fact that there are and always will be, unexpected and planned cost. I express my philosophy that they need to set up the budget with that in mind and also set up a budget that will allow a monthly "Principal payment". If life comes along, as it always does, they are at least in position to make the current mortgage payment as set up and feel a sense of relief by having the extra money they needed.[car, kids ect..] If they can plan on and use this approach, this not only pays off the mortgage faster, if also is a built in safety net, increases their equity faster, thus giving them a true sense of accomplishment. "The American Dream" of home ownership. As to whether the person made a down payment of any size is irrelevant if they do not understand the basics and as the one in a million people they could have choose to use, I feel a personal responsibility to make sure they are educated and informed. Not to scare them away, or for me to make a decision on their ability to stay when the going get tough. J.J and Dave,

I must say that you both have valid points but that they are also vague and relative to the individuals involved.

As a responsible person and aside from being a loan originator, I “ALWAYS” make sure the customers understand that the P.I.T.I. is not the only expense they will incur as a “Homeowner”. A home is like a child in the fact that there are and always will be, unexpected and planned cost. I express my philosophy that they need to set up the budget with that in mind and also set up a budget that will allow a monthly “Principal payment”. If life comes along, as it always does, they are at least in position to make the current mortgage payment as set up and feel a sense of relief by having the extra money they needed.[car, kids ect..]

If they can plan on and use this approach, this not only pays off the mortgage faster, if also is a built in safety net, increases their equity faster, thus giving them a true sense of accomplishment. “The American Dream” of home ownership.

As to whether the person made a down payment of any size is irrelevant if they do not understand the basics and as the one in a million people they could have choose to use, I feel a personal responsibility to make sure they are educated and informed. Not to scare them away, or for me to make a decision on their ability to stay when the going get tough.

]]> By: J.J. http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3458 J.J. Wed, 20 Feb 2008 04:42:56 +0000 http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3458 I agree with you Dave. When someone buys a house they do have to come up with several thousands of dollars at the closing table even with no money down. Now when option arms came into place that definitely affected people at the same time it is the borrowers fault as well when they loose there home. The reason I say this is everyone wants to keep with the Jonse's when they can't afford to (CA) especially and the borrower looses everything. Simply put if you can't afford a house on a regular 30 fully amoritized term don't buy it. And if you're a good LO you should explain to your borrower they should'nt buy a house they can't afford on a 30yr term. I refuse to do a loan my borrower can't afford when it's fully amortized. Now as for the recession that is also playing a big part of the housing slump but of course we as Loan Officers who just do our job like anyone else are blamed for the reason for people being in their current situation. Its like that person who goes to the doctor and is educated on how to keep healty but does the opposite or those two people who want to get married and a pastor refuses to marry them for numerous reasons and they go to Vegas and get married and then divorce after a year or 6mos. The people have to listen when they are educated on how to buy and keep their home. I agree with you Dave. When someone buys a house they do have to come up with several thousands of dollars at the closing table even with no money down. Now when option arms came into place that definitely affected people at the same time it is the borrowers fault as well when they loose there home. The reason I say this is everyone wants to keep with the Jonse’s when they can’t afford to (CA) especially and the borrower looses everything. Simply put if you can’t afford a house on a regular 30 fully amoritized term don’t buy it. And if you’re a good LO you should explain to your borrower they should’nt buy a house they can’t afford on a 30yr term. I refuse to do a loan my borrower can’t afford when it’s fully amortized. Now as for the recession that is also playing a big part of the housing slump but of course we as Loan Officers who just do our job like anyone else are blamed for the reason for people being in their current situation. Its like that person who goes to the doctor and is educated on how to keep healty but does the opposite or those two people who want to get married and a pastor refuses to marry them for numerous reasons and they go to Vegas and get married and then divorce after a year or 6mos. The people have to listen when they are educated on how to buy and keep their home.

]]> By: Texas http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3284 Texas Thu, 14 Feb 2008 19:01:44 +0000 http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3284 Will Texas be included in the limit increases? Will Texas be included in the limit increases?

]]> By: Dave H http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3257 Dave H Wed, 13 Feb 2008 20:38:37 +0000 http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3257 I can;t understand for years we have been giving buyer the chance to own thier own home with no money down. In normal markets people don't check the monthly appraised value of thier home and sit down at the family meal and make a dicision as to weather they should pack up and leave because the homestead has lost some value. We just will not stay in a house tahts not worth more then we owe. Come on this premise that people don't have a vested interest in staying in a home they put no down payment on is farsicle at best and smells of Americans looking for a quick and easy anwser to a much more complex problem. Even if a buyer puts nothing down on the purchase price of a home they must come up with several thousands of dolllars for things like closing costs insurance payments and moving costs to suggest that leaving a home that someone loves because they think it might of lost some sellable value in the future is just hogwash. The problem is when they use programs that allow them to buy homes they can't afford to maintan or they somehow lose income after they own the home. The economy is half the problem not the housing slump its the recession stupid. The one no one is willing to talk about. I can;t understand for years we have been giving buyer the chance to own thier own home with no money down. In normal markets people don’t check the monthly appraised value of thier home and sit down at the family meal and make a dicision as to weather they should pack up and leave because the homestead has lost some value. We just will not stay in a house tahts not worth more then we owe. Come on this premise that people don’t have a vested interest in staying in a home they put no down payment on is farsicle at best and smells of Americans looking for a quick and easy anwser to a much more complex problem. Even if a buyer puts nothing down on the purchase price of a home they must come up with several thousands of dolllars for things like closing costs insurance payments and moving costs to suggest that leaving a home that someone loves because they think it might of lost some sellable value in the future is just hogwash. The problem is when they use programs that allow them to buy homes they can’t afford to maintan or they somehow lose income after they own the home. The economy is half the problem not the housing slump its the recession stupid. The one no one is willing to talk about.

]]> By: Jeremy R http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3239 Jeremy R Wed, 13 Feb 2008 01:36:17 +0000 http://www.fhaloanpros.com/2008/02/hud-to-congress-we-want-more-and-less/#comment-3239 In the current market I believe that those purchasing homes should put no less than 20 percent down. I say this because right now those who received 100 percent financing have no vested interest in the home and can simply walk away. If you require homebuyers to put a chunk of money down they will make sure that they exhaust every last possiblity before giving up on their home loan. Also, with home values declining banks are at too much risk to loan 100 percent. In the current market I believe that those purchasing homes should put no less than 20 percent down. I say this because right now those who received 100 percent financing have no vested interest in the home and can simply walk away.

If you require homebuyers to put a chunk of money down they will make sure that they exhaust every last possiblity before giving up on their home loan. Also, with home values declining banks are at too much risk to loan 100 percent.

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