Quote:
Originally Posted by MediaArtist
Actually you are being dishonest, in the very link I posted earlier in the thread:
http://money.cnn.com/2012/07/09/real...cies/index.htm
... it shows that Fannie/Freddie, and privately held bank mortgage delinquencies are actually dropping (probably because their underwriting standards have become more strict since the economic collapse in 2008). FHA held mortgage delinquencies are rising extremely fast because they allow people to only put down 3.5% on a $300,000 home like YOU are suggesting. Putting down 3.5% on a $300,000 home is insanity. If you can only save up $11,000, you shouldn't be buying a home worth $300,000. The statistics undeniably show that people taking YOUR advice simply don't know what they are doing, and end up in foreclosure.
You can claim otherwise, but the data shows that FHA loaners are increasingly defaulting. FHA is going to implode fairly soon with people who acted on advice like you have given out. It's knuckle-headed, consumerist, garbage, that got many people in trouble from 2002-2008. Simply, some very horrible advice. |
How am I being dishonest when I never clicked on your link to begin with? It's not even your research.. It's just a Google-job. And the irony in your point is that the article sites Fannie May and Freddie Mac, which are two lenders who have benefited from gov't bailouts during the entire subprime fiasco. Moreover, that increase in foreclosures that were 90 days or more delinquent soared for the year ending March 31. How are those fuzzy numbers a comprehensive view on the the actual numbers of FHAs backed loans v. MBS loan delinquencies? That simply shows a period of time in which the increase was notable. They also addressed that FHA loans weren't as easy to modify when compared to others.
And if you take into account the demographic of the FHAers, I'd bet many were first time home buyers who didn't understand what they were getting into contract-wise and or chose properties that were destined to lose money. It's way too many variables to account for. Still... 3.5% v 20% down is a myth. If you're going to be paying a mortgage for 30 years, I really don't see the benefit of hemorrhaging your bank account so as to avoid a PMI. Hell, you can pretty much double the value of your home and that's what it'll actually cost you over thirty years. Homes are a liability. Throwing cash at it is a predictable as playing darts. Your point(s) are moot.