All Posts Tagged With: "down"
FHA — Yes (Sort Of) To No Money Down
HUD has come out with new regulations which will allow borrowers to get FHA financing with no money down — but only in very limited circumstances.
On May 11th HUD said first-time buyers could use their $8,000 tax credit to fund their FHA downpayment. In effect, borrowers would get a short-term bridge loan that would [...]
Will HUD Allow FHA Loans With No Money Down?
Has HUD changed its mind?
On Monday, May 11th, HUD posted Mortgagee Letter 2009-15 which explained that “Federal, state, and local governmental agencies and nonprofit instrumentalities of government, FHA-approved nonprofits, and FHA-approved mortgagees may provide short-term or “bridge loans” secured only by the anticipated tax credit due the homebuyer as collateral.”
Immediately the letter was removed from [...]
Bankruptcy Fables Your Lenders Love
Should bankruptcy judges have the right to modify home mortgages? Would that be fair? Or unfair?
It’s a political question, of course, and when the time came for the Senate to vote in April the count was 51-to-45 against a measure would give judges the right to change home loan terms and rates. For the moment [...]
4May2009 | Peter G. Miller | 0 comments | Continued
New Mortgage Modification Effort Starts In Washington
There’s talk in Washington that Citigroup and congressional Democrats have decided to end the abuse of mortgage borrowers facing bankruptcy.
To understand what’s happening here, you have to go back to 2005 when a Republican House, a Republican Senate and a Republican President agreed that the Nation would be well served if bankruptcy judges were not [...]
Why Have Piggyback Mortgages Disappeared?
We usually define a “conventional” mortgage as financing with 20 percent down. Since most people don’t happen to have 20 down much less 20 percent plus closing costs, there has always been a market for mortgages that somehow require fewer dollars up front.
The way you get loans with less down is to find [...]
10 Ways To Buy Homes In A Down Market
At first it may seem like a no brainer, low-hanging fruit and child’s play, but purchasing in a down market is not as easy as it may seem. The problem is not a shortage of homes or a lack of sellers willing to bargain, rather it’s that buying in such a market can be risky. [...]
20Sep2008 | Peter G. Miller | 0 comments | Continued
Marathon Sellers Race Reality
A new species of real estate owner has begun to emerge: the marathon seller. Maybe you have them in your community, owners who believe in real estate exceptionalism, the idea that their homes are growing in value while real estate prices all around are stalled or falling.
These owners truly believe that somehow their property [...]
Should The Poor Make A Profit?
Owning a home is a wonderful thing, in part because real estate offers the potential to rise in value. Why then does government discourage home ownership by limiting profits for the poor?
There is no end to the news releases and announcements from government officials at every level explaining that they want to see the [...]
Why Do We Need Private Mortgage Insurance?
Question: We’re buying with 10 percent down. Our lender says we can get a loan but only with private mortgage insurance. What is private mortgage insurance and why do I need it.
Answer: Lenders want as little risk as possible when they make a loan – a not-unreasonable position. To limit their risk they want borrowers [...]
How Does A “Buy-Down” Reduce Interest Costs?
With a “buy-down” you have a below-market interest rate (it is “bought down”) because either the borrower or the seller have given additional money to the lender up front.
There are different forms of buy downs, most reduce interest costs in the first few years of the loan. For instance, if you pay an extra 1 [...]
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