ARE YOU NEW HERE? NOT LOGGED IN? PLEASE TAKE A MOMENT TO REGISTER FOR AN ACCOUNT AND LOGIN TO REMOVE THIS WINDOW
Welcome to PatsFans.com. Do you have an account? If not - please take a moment to register for our forum and experience a much smoother experience with fewer ads, along with no longer having to see this notification window. Also learn about how you can receive a free Patriots T-Shirt from the Patriots Official ProShop by CLICKING HERE. Please enjoy your stay here, and Go Pats!
As government program after government program fail, taxpayers are always left on the hook for the loss. The FHA/HUD is just one prime example.
Quote:
The FHA is another case study in how government programs sold with the best intentions are inevitably corrupted. FHA was founded in 1934 to help lower- to middle-income and first-time home buyers obtain a mortgage, but its mission expanded over the years as the housing lobby sought to channel ever more taxpayer-guaranteed money into housing. When the agency opened, its minimum down payment was a prudent 20%. In the 1960s, that number fell to 10%, and now it's 3.5%.
The other issue is accountability. As government program after government program fails, no one takes responsibility. Fannie and Freddie hit taxpayers for $138 billion, the Post Office loses $15.9 billion, and now the FHA is insolvent. We weren't kidding about those salary clawbacks.
We need to pass a law that states no government program can operate at a loss for more than 2 years. If it violates that policy, it must be dismantled.
Last edited by PatriotsReign; 11-20-2012 at 06:49 AM..
DONATE TO PATSFANS.COM
RECEIVE A FREE PATS T-SHIRT AND SAVE 15% OFF WHEN YOU BUY FROM THE OFFICIAL PROSHOP!
Free T-Shirt & Save 15% Off!
Like Our Site? Please help support our site and server costs by DONATING TO PATSFANS.COM and receive a FREE PATRIOTS T-SHIRT and SAVE 15% off EVERY purchase you make from PatriotsProShop.com. You'll also receive added benefits to your account including Removing All Ads During Your Experience Here At Our Forum.
NEEDED YEARLY SITE DONATIONS: 345 | CURRENT # OF SUBSCRIBED SUPPORTERS: 98
Lets see, if I make enough money to afford the payments for a home in the greater boston area, lets say melorse. Lets say I can afford to buy a $450k home, except that I do not have the $90k to put down (your 20%).
WTF? Seriously, I can easily afford the home, but I haven't had the time, as I am young to afford such a huge down-payment. Heck I could not afford 10%, but I can afford 3.5-5%. Don't you want me in a home, so I can raise my family, pay property taxes etc? Home owners are better citizens.
Lets see, if I make enough money to afford the payments for a home in the greater boston area, lets say melorse. Lets say I can afford to buy a $450k home, except that I do not have the $90k to put down (your 20%).
WTF? Seriously, I can easily afford the home, but I haven't had the time, as I am young to afford such a huge down-payment. Heck I could not afford 10%, but I can afford 3.5-5%. Don't you want me in a home, so I can raise my family, pay property taxes etc? Home owners are better citizens.
The benefits for society are great.
It's all about prudency chucks. So if you can "easily afford" a $450k home, that means you'd be making at least $150k-$200k/year. So you should "easily" be able to save 20% for a downpayment too.
The default rate for people who put down 20% or more is much lower than for those who put down 3.5%.
If you put down 3.5% on $450k, that would be a $15,750 down payment. Which means your mortgage would be $434,350. That's a hefty mortgage payment.
Why do you think the current rate of delinquency is 25% for FHA loans vs. a much lower rate on private mortgages? Because privage lenders are more prudent and responsible (not counting the housing boom).
Americans want as many people as possible to own homes...that is true. But we also want the best candidates possible to minimize taxpayer liability. Because unlike private mortgages, taxpayers are responsible when FHA/HUD goes into the red.
And personally, I don't want to be responsible for other peoples' screw ups.
Last edited by PatriotsReign; 11-20-2012 at 10:22 AM..
Except that it is taking me twice as long to save money for a house, because I am basically paying a mortgage payment on a $400k house for rent.
That was a choice you made. You could have rented a modest apartment so you could save more. I'm not saying you made a wrong choice....but that you made "a" choice and all the pro's & con's that go with it.
That was a choice you made. You could have rented a modest apartment so you could save more. I'm not saying you made a wrong choice....but that you made "a" choice and all the pro's & con's that go with it.
Welcome to the real world chuck!
Except that the real world allows me to put down 3.5-5% on a FHS loan,
That was a choice you made. You could have rented a modest apartment so you could save more. I'm not saying you made a wrong choice....but that you made "a" choice and all the pro's & con's that go with it.
Welcome to the real world chuck!
Exactly....people have forgotten about the word "sacrifice". They want everything....now. Again, the entitilement society.
My parents had to have 20% down on their home or a bank wouldn't even discuss giving them a loan. You had to prove to a bank that you were a good risk or you didn't get a loan.
Now, the government still makes it easy for people to get loans who aren't willing to sacrifice or who aren't risk worthy.
Exactly....people have forgotten about the word "sacrifice". They want everything....now. Again, the entitilement society.
My parents had to have 20% down on their home or a bank wouldn't even discuss giving them a loan. You had to prove to a bank that you were a good risk or you didn't get a loan.
Now, the government still makes it easy for people to get loans who aren't willing to sacrifice or who aren't risk worthy.
Your parents probably paid something like 20K for the home, so it is raisins and grapefruit..
Perhaps we should have the potential homebuyers all wear sack cloth and ashes in the town square to show how much a sacrifice they are willing to make..
Habitat for Humanity, requires 0 Down Payment, 0 financing and have few defaults on the 250,000 homes they have built... or course they and their families are required to fulfilll 250 hours of "sweat equity" before they move in.
The houses are quite nice, well built and many times meet LEED qualifications..
Perhaps it is better to think outside of the box, as creative solutions are somewhat better than the same old.
__________________ "Being the best doesn't mean you always win. It just means you win more than anyone else".. tweet from Kurt Warner to Tom Brady.
PR, if a program could be profitable it wouldn't be a government program.
By definition a government program provides a service that the government feels is not occurring in the marketplace but worth the loss!
I'm not defending FHA, I'm merely saying people that expect these programs to turn a profit are delusional. If it was profitable a private business would have taken care of it by now.
To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
The Patriots have been overachievers the past two years. It doesn't have the talent to compensate for injuries, and it wins so much because it puts in 99% effort in the regular season and plays with terrific schemes to mask its deficiencies.
But in the playoffs a good team at 99% will not beat emotional, talented teams that play at 100%. It's what happened against the Giants in 2011 and the Ravens in 2012.
Your parents probably paid something like 20K for the home, so it is raisins and grapefruit..
Perhaps we should have the potential homebuyers all wear sack cloth and ashes in the town square to show how much a sacrifice they are willing to make..
Habitat for Humanity, requires 0 Down Payment, 0 financing and have few defaults on the 250,000 homes they have built... or course they and their families are required to fulfilll 250 hours of "sweat equity" before they move in.
The houses are quite nice, well built and many times meet LEED qualifications..
Perhaps it is better to think outside of the box, as creative solutions are somewhat better than the same old.
Actually it was 20k and my father made 5k a year so everything is relative. The house was very small by today's standards and we lived within our abilities.
As for Habitat for Humanity, they are a christian charity...not a bank. Oh, and they require the following:
• Be citizens or legal residents.
• Prove steady income.
• Have good credit.
• Earn a monthly income that falls within minimum and maximum limits, depending on household size.
• Sustain a savings account over a specified period of time.
In addition, each partner family will be required to:
• Invest sweat-equity hours in building his/her home and others.
• Make an affordable down payment.
• Make timely mortgage payments.
• Attend homeowner education classes
9Likes
Government Failure
Linear Mode
