Tuesday, September 9, 2008 at 07:00PM
DAPs Aren't Dead Yet!
From Inman News:
Whoops. I used to have the Inman News article on how Barney Frank and his congressional cronies are bringing back the DAPs, or seller-assisted down payments on FHA loans.
But Inman News has instructed me to remove it immediately, in spite of the fact that I paid $150 to be a member of Inman News, which, when I read it, meant that I could re-print their articles. Elaine said I read it wrong, and they changed their policy anyway.
So Inman News wins!
Instead, here's a link to a brief summary:
http://news.yahoo.com/s/usnw/20080910/pl_usnw/ameridream__h_r6694_scheduled_for_markup_next_week
Jim the Realtor
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Reader Comments (5)
If they are really worried about taxpayers' money, they should raise the down payment to at least 10%. We are in credit crunch and there is absolute no reason to throw good money down to the toilet as what FHA has been doing lately.
On a side note, why would people in Merced, Modesto and Stockton care? I thought in these places the price has dropped so much that builders are not interested in building new houses anymore, much like the case in Temecula.
The DAP is a shame. I am a very calm and pragmatic person, and it takes a lot to push me over the edge, but this Syphax guy literally makes me sick.
Enough of this crap! I too am sick of this...
It's been a while since I've read about FHA loans. Do they waive the PMI costs, or are they just lower than PMI? Any drawbacks as long as you qualify?
My situation is I might have 12%-15% down for a nice home, or 20% down for a pretty low end one.
Do they waive the PMI costs, or are they just lower than PMI? Any drawbacks as long as you qualify?
The biggest thing is that they take low downpayments and people with worse than normal credit. Before the zero down loans were available, it was the only way to get a decent home loan without 20% down.
Seriously though, if you can't save 3.5% then you have no business buying a home period. What happens when your roof goes out? Or the water heater, or a pipe breaks etc. If you don't have the savings to fix problems immediately, then the house could end up ruined. People who can't save $8,000 while renting, are never going to be able to save that kind of money for repairs while making mortgage payments. The mortgage interest deduction is also worth far less to low-income individuals as well. What is the upside of getting a bunch of poor people into houses. It only leads to record foreclosure numbers.