patrick.net

I won't care to read any of the OC register reports on housing.

It's the "give me" generation effect. They are unable to save money at all.

OK so in 2001 FHA loan cap was I think 180k and fannie/fraudie loan cap was 220k.

Now both are 729k

Government has almost completely taken over ALL MORTGAGE LENDING it used to be 50% of loans were VA,FHA,FANNIE,FRAUDIE now those are 96% of all mortgage loans written. This is soviet america for sure. fudge the forms correctly and 'get something'. Then it goes south and fudge more forms and 'get more' (loans,loan mods, s-8, welfare,food stamps, student aid, student loans, etc)

FortWayne says

It's the "give me" generation effect. They are unable to save money at all.

How many iPhones do these kids need? How many BMWs do their parents need?

FHA should be abolished or the limit should be set back down to $250,000 in high priced areas, and $150,000 everywhere else.

Goran_K says

FHA should be abolished or the limit should be set back down to $250,000 in high priced areas, and $150,000 everywhere else.

But, HOW WILL PEOPLE AFFORD HOMES?!?!??!?!!??!?

(never mind that affordability is a function of price, not availability of easy credit...nothing to see here, keep moving folks)

Goran_K says

FHA should be abolished or the limit should be set back down to $250,000 in high priced areas, and $150,000 everywhere else.

Well I think if you're making money to live in the "High priced" area, then they should be on their own. it should be a cap across the board. Good news bad news, you qualify for an FHA loan, but if you want to live near the "good schools" you'll have to find other options.

Parents living in good school communities should not be subsidized by the government. Unless we make all schools equal, which I thought at one time, that was the idea.

OC has nothing on us in the Bay Area. I found the original report (it is worth reading) link below.

In SF county *79%* of FHA borrowers made more than $100k and 45% made more than $150k. Well good to know my tax dollars go to those in need.

http://business.gwu.edu/creua/research-papers/files/FHA2012Q1.pdf

CaptainShuddup says

Goran_K says

FHA should be abolished or the limit should be set back down to $250,000 in high priced areas, and $150,000 everywhere else.

Well I think if you're making money to live in the "High priced" area, then they should be on their own. it

Incidentally, the professors who wrote the report basically also argued in favor of dramatic cuts in FHA limits.

so let me get this straight... these people are making $100,000-150,000/yr but can't afford more than a 3.5% downpayment? Isn't that a huge red flag right there?

I mean, upfront MIP itself on a $700,000 home is 10 grand!