I see the home builder's got a lot of attention in the Dispatch this morning with their loan qualifying techniques.
I think it may be time to face reality here folks. First should every one living in the U S own their own home? Should a family no matter how deserving that can't or doesn't have the ability to save for a minimum 3% down payment be allowed to borrow money to own that dream home?
In years past when FHA insured loans were approved they required the seller to have the mechanicals in the homes all in working order. This insured the new owners that they would not need to have extra cash available for repairs in the first few years because the new buyer was a high risk.
Yes having questionable income is a loan risk.
The second requirement was that the buyer had to come up with a down payment. Now through a loop hole Dominion has found a way to pay that down payment for the buyer through a charitable organization.
So if you have never lived in a home that you owned and you have NOTHING of value from you in this new home what are your odds of walking away once the bills come in the front door? If you had say $5,000 of your hard earned cash invested would it make a difference of whether you leave or stayed?
So how does this affect us all?
If you combine all of the incentives these builders are offering and then say how does this affect me? Clearly once you have just ONE foreclosed home in your neighborhood it affects the value and selling price of every home. Normally this means that the area is over built and you can't sell your house for what you have in it. Many times the builders are also protecting themselves while saying they are providing affordable housing by rolling over all of these initial expenses into the home price. This inflates the initial home prices and once the existing homes start to try to sell and they can't, the entire community starts to decline.
For those that have tried to sell their homes recently we are seeing that decline. The over all property valuation of the entire community then suffers and that is what our schools base their funding on.
Home ownership sounds good but it bites in a depressed economy
By Just getting by
I think it may be time to face reality here folks. First should every one living in the U S own their own home? Should a family no matter how deserving that can't or doesn't have the ability to save for a minimum 3% down payment be allowed to borrow money to own that dream home?
In years past when FHA insured loans were approved they required the seller to have the mechanicals in the homes all in working order. This insured the new owners that they would not need to have extra cash available for repairs in the first few years because the new buyer was a high risk.
Yes having questionable income is a loan risk.
The second requirement was that the buyer had to come up with a down payment. Now through a loop hole Dominion has found a way to pay that down payment for the buyer through a charitable organization.
So if you have never lived in a home that you owned and you have NOTHING of value from you in this new home what are your odds of walking away once the bills come in the front door? If you had say $5,000 of your hard earned cash invested would it make a difference of whether you leave or stayed?
So how does this affect us all?
If you combine all of the incentives these builders are offering and then say how does this affect me? Clearly once you have just ONE foreclosed home in your neighborhood it affects the value and selling price of every home. Normally this means that the area is over built and you can't sell your house for what you have in it. Many times the builders are also protecting themselves while saying they are providing affordable housing by rolling over all of these initial expenses into the home price. This inflates the initial home prices and once the existing homes start to try to sell and they can't, the entire community starts to decline.
For those that have tried to sell their homes recently we are seeing that decline. The over all property valuation of the entire community then suffers and that is what our schools base their funding on.
Home ownership sounds good but it bites in a depressed economy
By Just getting by
