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sithburns
309 Posts |
 Posted - 09/25/2008 : 10:51:01 AM
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| Anyone heard anything about the ligislation to bring back DPA? |
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bestbet123
1577 Posts |
Posted - 09/25/2008 : 10:59:55 AM
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| It goes for consideration on the 1st of October,keep your fingers crossed. |
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eddieinab
55 Posts |
Posted - 10/06/2008 : 1:57:51 PM
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| Has anyone heard anymore about this. Was told it passed a Verbal Vote on the Floor, but I guess it got lost during the $700B Bailout deal? |
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cspatmon
2092 Posts |
Posted - 10/06/2008 : 2:20:14 PM
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 ! |
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HonestNJBroker
315 Posts |
Posted - 10/06/2008 : 3:45:51 PM
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| If you can't save 3 to 3.5% you should be a renter. |
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sithburns
309 Posts |
Posted - 10/06/2008 : 3:46:30 PM
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| That is utter BS |
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HonestNJBroker
315 Posts |
Posted - 10/06/2008 : 4:06:29 PM
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``Does it make sense to make 3 percent down payment mortgages in this climate?'' said Guy Cecala, publisher of Bethesda, Maryland-based Inside Mortgage Finance, who argues that homeowners who bought houses in most parts of the country three months ago with 3 percent down would already owe more than their houses are worth.
``Will there need to be an FHA bailout two or three years from now?'' Cecala said.
http://www.bloomberg.com/apps/news?pid=20601109&sid=a98TMgmjzpSU&refer=home
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eddieinab
55 Posts |
Posted - 10/07/2008 : 06:51:36 AM
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| I am sorry, I don't agree. While a agree that most people must have some "skin" in the game, just becasue you don't put money down doesn't mean you will go into forclosure. If I am not mistaken VA doesn't require ANY down payment. |
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sithburns
309 Posts |
Posted - 10/07/2008 : 06:57:21 AM
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And some people may have the money but not want to use it.
Houses in Florida are loosing between 1%-5% in value MONTHLY right now.
So you can save up for five years and then in one MONTH loose that investment if your buying in Florida right now. |
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just in kase
474 Posts |
Posted - 10/07/2008 : 07:51:55 AM
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tell that "skin in the game" line to all the CA homeowners who put down 10-30%, thier entire life savings, now have nothing!
this is not about what the borrower did 1 year , 1 week, or 1 day ago. if the homeowner can not make thier payment at the current time, they are not going to stay in the home. i would rather have a borrower with 3 months PITI reserves than a 3% downpayment. at least i know he/she has the abilty to make 3 months payemnt if a life changing event ocurrs.
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eddieinab
55 Posts |
Posted - 10/07/2008 : 07:57:01 AM
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| I agree whole heartedly! |
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HonestNJBroker
315 Posts |
Posted - 10/07/2008 : 07:59:45 AM
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| ok so they "show" 3 months in the bank-who says a week after settlement they don't spend it, now what? How many people REALLY have 3 months of PITI in a savings account? |
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just in kase
474 Posts |
Posted - 10/07/2008 : 08:11:07 AM
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your point is?
spent(downpayment) vs. could be spent.
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lemeuss
463 Posts |
Posted - 10/07/2008 : 10:02:57 AM
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quote:
Originally posted by just in kase
your point is?
spent(downpayment) vs. could be spent.
very good point...I try to have my clients put down as little as possible so there monies can be vested in more stable accounts...its not always about if they CANT put 3% down, its more like "why put it down if you dont have to and can manage your finances".
Another example...recent college grad, just out of school, finds a great job ,and right afterwards finds an amazing house thats on the market at a steal. Just because the 3% isn't available, doesn't mean this person shouldn't get into a house if it's full doc w/a low DTI.
saying all DPA is a bad thing is just a dumb generalization...it's got to be case by case, and there needs to be guidelines. |
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ritabradley01
3158 Posts |
Posted - 10/07/2008 : 10:14:46 AM
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100% loans default more often.
If I was loaning out my money, I'd want people to put down 3%. Harder to walk away from. |
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eddieinab
55 Posts |
Posted - 10/07/2008 : 10:20:41 AM
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When I was in Wholesale, I had a rep who put 20% down, then came the SubPRime slide and she lost the home.. So with your reasoning, 20% down isn't enought to keep people from walking. Until you are in THEIR shoes I would withhold judgement.
I agree that the 100% Stated W-2 loan from New Century was garbage, but I wonder how many peolpe still have those loans? I few bad apples is spoiling it for the rest! |
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just in kase
474 Posts |
Posted - 10/07/2008 : 10:35:22 AM
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the problem is not DPA.
th problem is an appraisal and credit issue.
if HUD wanted to reduce the amounts of default. HUD would require 3% from borrower own funds period. not allow gifts, grants etc..
i am also a big supporter that HUD should terminate private funded DPA and offer HUD DPA. net roughly $300.00 per transaction at 20,000 transaction per month is 6.0 million dollars ( per month ) back into HUD to support defaults or reducing the UFMIP or MIP.
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lucky1s
3614 Posts |
Posted - 10/07/2008 : 11:40:23 AM
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Youi guys should not have bumped up the prices to make it work.
You have nobody to blame but yourselves. |
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Reegor
483 Posts |
Posted - 10/07/2008 : 12:08:27 PM
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The 100% loans default more often is bad data. Others default just as often but they had options to refi or have an investor steal their equity. So that fact that 100% loans default more often is not true by any accounts. They may get fc more often because they lack options but not having money to pay the mortgage is not having the money. If I put 30% down and couldn't pay the mortgage the 30% didn't help me. Especially in todays climate. What the 30% did is permit the lender to take my home and not scream about it. The default still happened.
These figures used are as bad as I'll give you 100% commission. 100% percent of what. Numbers can be interpreted for whatever you want. |
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powwow
385 Posts |
Posted - 10/07/2008 : 2:09:36 PM
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| Your right about that Lucky. 29% of DR Horton's sales in July untilized DPA funds. That's a whole lot of bad loans. You guys just keep hangin' on. Barney is going to come through for you. LOL |
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sithburns
309 Posts |
Posted - 10/07/2008 : 2:14:55 PM
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| I really think that idea of having a HUD funded DPA program with the funds going back into securing loans is a great idea. |
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powwow
385 Posts |
Posted - 10/07/2008 : 2:25:44 PM
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| The best answer if your dead set on on putting people in homes with no downpayment is for FHA to have a 100% program. Let's stop pretending that a downpayment is being made. Save it for people with established good credit and charge a higher MIP. |
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ritabradley01
3158 Posts |
Posted - 10/07/2008 : 3:36:34 PM
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quote:
Originally posted by lucky1s
Youi guys should not have bumped up the prices to make it work.
You have nobody to blame but yourselves.
I hope you're not talking to me. |
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lucky1s
3614 Posts |
Posted - 10/07/2008 : 3:38:31 PM
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| Our comps from last summer are so screwed up because of that program. |
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eddieinab
55 Posts |
Posted - 10/07/2008 : 3:42:01 PM
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quote:
Originally posted by lucky1s
Our comps from last summer are so screwed up because of that program.
What programs? DPA? How does someone with DPA effect a comp?
Please educate us? |
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eddieinab
55 Posts |
Posted - 10/07/2008 : 3:44:30 PM
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quote:
Originally posted by lucky1s
Youi guys should not have bumped up the prices to make it work.
You have nobody to blame but yourselves.
The only person who can bump up a value is a BAD APPRAISER!! And everyone I ran across was turned into the State of Florida |
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eddieinab
55 Posts |
Posted - 10/07/2008 : 3:46:05 PM
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quote:
Originally posted by powwow
Your right about that Lucky. 29% of DR Horton's sales in July untilized DPA funds. That's a whole lot of bad loans. You guys just keep hangin' on. Barney is going to come through for you. LOL
Do you have HARD evidence that a loan with DPA turns into a Foreclosure. What is your source? |
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sithburns
309 Posts |
Posted - 10/07/2008 : 3:50:26 PM
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I put 20% down on my home 2 years ago. I'm now upside down $60K on my house and my arm adjusts in December.
I think I"m just as risky at this point as the person that put down 3% or 0%.
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lucky1s
3614 Posts |
Posted - 10/07/2008 : 3:50:48 PM
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| Most comps from this summer in our area closed exactly 6% over the list price. |
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eddieinab
55 Posts |
Posted - 10/07/2008 : 3:57:19 PM
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| So in other words, if there wasn't a DPA program the house wouldn't have sold? |
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powwow
385 Posts |
Posted - 10/07/2008 : 5:07:02 PM
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The point of the down payment is not to protect the buyer but to protect the lender and someone with 30% of their money in the deal is much less likely to walk away.
Sithburns, I honestly feel your pain. I feel sorry for anyone who bought their house in the last 2 years. Let me ask you this: If all these bad loans had not been made do you think that your property value would have dropped?
edieinab, this is how it works. Floor plan A has a list price of 100k. Home sells for 106k to accomodate DPA. Builder says wow 106, I must have undersold the house. New list price for plan A is 106k. Home sells for 113k to accomodate DPA. etc, etc. etc. I have literaly seen the prices in starter home subdivisions spiral up 40-50% in two years. As we have seen this type of growth is unstainable.
What should be happening is that the actual closing costs should be reported accurately in local MLS (DPA + CC's). If this was done then the appraiser would know that DPA was utilized and the sales price was artificially inflated. Then an appropriate adjustment could be made. 99% of the time the agent does not accurately report the concession. |
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