patrick.net

No. Duh.

Strategist: "yes"

I agree with S only for the reason that it will exacerbate a bubble and possibly precipitate the fall back to reasonable prices

JH says

Strategist: "yes"

I agree with S only for the reason that it will exacerbate a bubble and possibly precipitate the fall back to reasonable prices

Nothing wrong with giving a stated income loan to someone with 835 FICO, and a 50% down payment. It's the safest loan a bank can ever make.
Home prices IMO will take a big jump by 2017, followed by a flat market for a few years. The fundamentals do not exist for a crash. :)

Call it Crazy says

Strategist says

JH says

Strategist: "yes"

I agree with S only for the reason that it will exacerbate a bubble and possibly precipitate the fall back to reasonable prices

Nothing wrong with giving a stated income loan to someone with 835 FICO, and a 50% down payment. It's the safest loan a bank can ever make.

How about with a 620 FICO and 5% down?

No stated income for them. Prove the income, and limit loan size.

Strategist says

The fundamentals do not exist for

Strategist says

a big jump by 2017,

Call it Crazy says

5% down

5%?!?! Where am I to find that kinda cash? I want zero down, interest only, with a stated income of $2M. Since prices will go up at least until 2017, I will be able to refi at 75% LTV in no time.

JH says

5%?!?! Where am I to find that kinda cash?

Use your credit card.
Call Mom.

Lenders say these aren't the same products as the so-called "liar loans" that were pervasive before the housing bust. Instead

they claim they're not back to the bad old days,

Lenders said they look for enough assets to pay six to 12 months of payments, while also demanding high down payments to reduce the chance of default.

although they're requiring as little as 15% more cash on hand (starting with a 20% down payment)

ome lenders, like San Jose, California.-based Western Bancorp, will accept credit scores as low as 620. Credit scores range from 300 to 850, with 640 seen as the line between prime and subprime.

and making sub-prime loans.

The issue is the down payment, not a person's ability to prove income. As long as houses in this area are requiring a couple of hundred thousand in cash just to play ball, they are not going to have many who will be able to participate. I think if they wanted to boost sales, they'd offer zero down with full roll-in of closing costs... and then just make sure that the person has the income to own the debt. If the banks are soooo certain that the market is on it's way to great health then why are they worried about down payments? The equity is built into this fabulously growing market where houses are always worth more in the future.... Maybe the banks aren't as optimistic as they pretend.

turtledove says

I think if they wanted to boost sales, they'd offer zero down with full roll-in
of closing costs

That will unnecesarily punish the savers who have sacrificed to save for the downpayment via price increases due to demand from the hedonists. I don't think that's the message that society out to send or reinforce.

drew_eckhardt says

like San Jose, California.-based Western Bancorp, will accept credit scores as low as 620.

Well, there you go. You can whine all you want about needing stated income for home businesses, but this is ultimately where it goes...down the drain...

Step 1: Reinstate stated income loans
Step 2: Redefine "bad credit history" to mean currently serving life in prison
Step 3: Jumbo size loans
Step 4: Bring back the mortgage forgiveness act.
Step 5: Steadily lower interest rates
Step 6: Freeze all new residential construction
Step 7: Redefine "Risky security"
Step 8: Watch the show!

9. Foreclosures should be banned.

bubblesitter says

9. Foreclosures should be banned.

But squatting encouraged!

Thomas Jefferson unveils his first draft of the Declaration of Independence:

BEN FRANKLIN: Wow, good job, Thom. But I don't quite get the part about Life, Liberty, a Free Home, and the Pursuit of Happiness. What's with the free home?
ROGER SHERMAN: Yeah, I was wondering the same thing. You're entitled to be able to work for a home, but to get it free?
JEFFERSON: Guys, try to think a little. One day we'll be free, and we'll elect our representation. To get elected you need to give people things. What better than a home?
JOHN ADAMS: I'm not following. Do you have any idea how much that will cost?
SHERMAN: And if we give people everything, where's the incentive to work? The whole system will collapse. Everyone will want a handout and they'll all just be takers. Who will be the givers?
FRANKLIN: Thom, this is a great document, but lose the free home, thing, will ya?
JEFFERSON: OK, fine, I'll remove it, but one day you idiots are gonna want some votes, and I'm tellin' ya, whoever gives people the most free stuff is gonna get those votes.
SHERMAN: You're talking about one hell of a corrupt system there, Thom. Will never happen. Jesus, we'll be just like England if that happens.
JEFFERSON: OK, I get it. I'll cross it out, but one day it'll happen. Might as well plan for it now. But whatever.

exfatguy says

but one day you idiots are gonna want some votes,

exfatguy says

whoever gives people the most free stuff is gonna get those votes.

exfatguy says

but one day it'll happen.

Should stated-income loans return in order to boost sales?

You should be able to get a loan just by stating that you have a heartbeat. Getting loans should be an entitlement that you don't ever have to repay. Oh wait, we just tried that. How did that work out?