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Housing Endowment and Regional Trust of San Mateo County for 1st Time Home Buyers

By BayArea following x   2019 Apr 23, 10:02am 438 views   17 comments   watch   nsfw   quote     share    


5% down
No PMI
Up to $908k purchase price
Max household income $190k

$908k purchase price on $190k income? 🤔

https://www.heartofsmc.org/programs/homebuyer-assistance/
1   HeadSet   ignore (1)   2019 Apr 23, 10:32am   ↑ like (0)   ↓ dislike (0)   quote   flag        

$908k purchase price on $190k income?

In the article, it says you only need $144k income to qualify:

2   Ceffer   ignore (1)   2019 Apr 23, 11:13am   ↑ like (1)   ↓ dislike (0)   quote   flag        

They'll all go to insiders or apparatchiks, or be used to parachute ghetto whompers in.
3   Blue   ignore (0)   2019 Apr 23, 11:34am   ↑ like (0)   ↓ dislike (0)   quote   flag        

The government is pupping in more resources to increase hosing demand. Great!
4   SunnyvaleCA   ignore (0)   2019 Apr 23, 12:53pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

$908,000 for a single-family home in San Mateo? Good luck! Setting my Zillow filters now....

Oh what a beauty! https://www.zillow.com/homedetails/1501-Dale-Ave-San-Mateo-CA-94401/15525721_zpid/
It's 69 years old, 2/1, 820 sq ft., 4 rooms! I wonder how old the roof is? How about the asbestos and lead paint situation? Oh well.

Unfortunately, the Zestimate is now above the $908k limit. Sorry!

As far as the "needed income" to qualify, I think it's a matter of priorities and price range. For a $200k house you probably do need $66k income to qualify because you'll need $30k for all your other expenses. But $144k income on a $908k house means you'll have at least $40k for all other expenses (after tax). That can work, as long as you don't mind living "poor" for the next 30 years.
5   OccasionalCortex   ignore (3)   2019 Apr 23, 12:58pm   ↑ like (3)   ↓ dislike (0)   quote   flag        

This is insanity. Pure insanity.

Want affordable housing? I said fucking HOUSING...not 'affordable' DEBT.

Easy: Withdraw federal support for jumbo mortgages, require ALL mortgages to require AT LEAST 20% down and impose a 15% federal sales tax on the difference between $300k and the total sales price (not capital gain) of all houses sold nation wide. Oh, and the feds get their tax money FIRST when the escrow puke starts cutting the checks: on pain of 10 years in prison if said escrow puke does not do so.

So:
For a 2,700 square foot 5 bedroom house in Kansas that sells for $270k on a full acre lot land: no federal sales tax. If someone financed that purchase all via mortgage then they would have to cough up at least $54k for the down payment.

For a postage-stamp sized lot 2 bedroom condo in San Mateo that sells for $650k: federal sales tax of $52,500 ($650,000 - $300,000 = $350,000 sales taxable amount; 15% of $350,000 = $52,500) and a down payment of $130k if they needed to finance the entire $650k price.

What? That is ridiculous? No it isn't. Not at all. As for 'not fair' regarding the sales tax, well...that's PROGRESSIVE TAXATION for ya! Live by the sword of 'nailing the rich' via progressive taxation, die by the sword of nailing said rich WHEN IT MEANS YOU ARE THAT 'RICH' via progressive taxation.

Any OTHER position can not be considered hypocrisy on the person bitching UNLESS said person was a conservative/libertarian who has been against progressive taxation for at least 10 years. (I through this trap into the faces of all my buddies bitching about losing big the SALT deduction cap, btw.)
6   ForcedTQ   ignore (0)   2019 Apr 23, 1:22pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

OccasionalCortex says
This is insanity. Pure insanity.

Want affordable housing? I said fucking HOUSING...not 'affordable' DEBT.

Easy: Withdraw federal support for jumbo mortgages, require ALL mortgages to require AT LEAST 20% down and impose a 15% federal sales tax on the difference between $300k and the total sales price (not capital gain) of all houses sold nation wide. Oh, and the feds get their tax money FIRST when the escrow puke starts cutting the checks: on pain of 10 years in prison if said escrow puke does not do so.

So:
For a 2,700 square foot 5 bedroom house in Kansas that sells for $270k on a full acre lot land: no federal sales tax. If someone financed that purchase all via mortgage then they would have to cough up at least $54k for the down payment.

For a postage-stamp sized lot 2 bedroom condo in San Mateo that sells for $650k: federal sales tax of $52,500 ($650,000 - $300,000 = $350,000 sales taxable amount; 15% of $350,000 = $52,500) and a down payment o...


Agree with most of this BUT the sales tax piece. What exactly does this help/pay for when going to the Feds? Why do we wish to make it MORE expensive to get into a house, sending money that is somewhere particularly UN-productive? As for the level of $300,000 exemption, why is that the number and what could adjust it up or down possibly by C.O.L.?
7   SunnyvaleCA   ignore (0)   2019 Apr 23, 2:03pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

ForcedTQ says
Agree with most of this BUT the sales tax piece. What exactly does this help/pay for when going to the Feds? Why do we wish to make it MORE expensive to get into a house, sending money that is somewhere particularly UN-productive? As for the level of $300,000 exemption, why is that the number and what could adjust it up or down possibly by C.O.L.?


I agree with you. An additional sales tax would just further already-large friction involved in buying and selling homes, resulting in a worse miss-match between a homeowner's needs and a homeowner's current home. We already have a problem with the real-estate cartel trying to grab their 6% commissions. A 15% tax would take about 5 YEARS of payments on a 30 year mortgage to recoup.
8   HeadSet   ignore (1)   2019 Apr 23, 2:40pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

Easy: Withdraw federal support for jumbo mortgages,

Why not withdraw gov support for all mortgages? That includes the "reverse" mortgages. It was as recently as 10 years ago that HALF the houses in the country did not have a mortgage at all. The "reverse" mortgage was introduced to combat the problem of too many people not in debt.

Also no MID at all.
9   OccasionalCortex   ignore (3)   2019 Apr 23, 3:33pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

ForcedTQ says
Agree with most of this BUT the sales tax piece. What exactly does this help/pay for when going to the Feds? Why do we wish to make it MORE expensive to get into a house, sending money that is somewhere particularly UN-productive? As for the level of $300,000 exemption, why is that the number and what could adjust it up or down possibly by C.O.L.?


That's just it: it won't make it more expensive except for rich fucks. For everyone else IT WILL put a cap on housing price rises in blue state areas that are wholly artificially caused. It will make them more affordable, much like higher property taxes do in Texas. Econ 101.

And, like I said, it will hit the bluetard states like the SALT deduction cap has and would barely effect the Red states.
10   OccasionalCortex   ignore (3)   2019 Apr 23, 3:35pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

SunnyvaleCA says
A 15% tax would take about 5 YEARS of payments on a 30 year mortgage to recoup.


Why on Earth would the sales tax be rolled into the mortgage? Current closing fees and taxes do not nor are property taxes?

Especially since it will be paid for by the seller. Unless the buyer is totally stupid.
11   ForcedTQ   ignore (0)   2019 Apr 23, 4:46pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

OccasionalCortex says
SunnyvaleCA says
A 15% tax would take about 5 YEARS of payments on a 30 year mortgage to recoup.


Why on Earth would the sales tax be rolled into the mortgage? Current closing fees and taxes do not nor are property taxes?

Especially since it will be paid for by the seller. Unless the buyer is totally stupid.


They aren't saying that it would be rolled into the mortgage, they are saying it would be equivalent to about 5 years of payments to recoup.

Since it will be paid for by the seller? Seriously? So, what other forms of sales tax do you know of that aren't indirectly paid for as a pass on to the buyer? The buyer WILL be the one paying the sales tax, as he/she will be the one providing the currency for the sale. At a minimum the sale price of the house will be adjusted up above non-sales taxed current market value to account for the cost of the sales tax to the seller. Unless the buyer is totally stupid my ass. Unless the seller is totally stupid maybe.... Really think the seller will sell below market 15% to cover the sales tax cost?
12   APOCALYPSEFUCKisShostikovitch   ignore (38)   2019 Apr 23, 5:26pm   ↑ like (2)   ↓ dislike (0)   quote   flag        

If someone doesn't have a million free and clear for a downpayment, there is no reason to take them seriously as a homebuyer. much less a human being.
13   BayArea   ignore (1)   2019 Apr 23, 6:29pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

APOCALYPSEFUCKisShostikovitch says
If someone doesn't have a million free and clear for a downpayment, there is no reason to take them seriously as a homebuyer. much less a human being.


Hehehe... CASH OR FUCK YOU NATION!!!

You guys know what would happen to home prices if you could only buy them in cash?

A 3/2 in Palo Alto would be $475k
14   ForcedTQ   ignore (0)   2019 Apr 23, 7:00pm   ↑ like (1)   ↓ dislike (0)   quote   flag        

BayArea says
APOCALYPSEFUCKisShostikovitch says
If someone doesn't have a million free and clear for a downpayment, there is no reason to take them seriously as a homebuyer. much less a human being.


Hehehe... CASH OR FUCK YOU NATION!!!

You guys know what would happen to home prices if you could only buy them in cash?

A 3/2 in Palo Alto would be $475k


At least make it max 15 Year term, min 20% down, 25% of household take home pay max amount of payment, & Fannie Mae Freddie Mac can go fuck each other....

Just means you have to save for longer or get a better paying gig if you don't make the income to live within your means and be financially responsible rather than house poor...
15   TrumpingTits   ignore (1)   2019 Apr 23, 9:27pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

ForcedTQ says
Since it will be paid for by the seller? The buyer WILL be the one paying the sales tax, as he/she will be the one providing the currency for the sale.... Really think the seller will sell below market 15% to cover the sales tax cost?


No. Not in this case. If the seller tries raising the price of the house in order to recoup that sales tax then the sales tax would just increase. The buyer can only afford to pay for so much home -- especially if we require 20% down payments like OC said. Or if the buyer could, he's feel it directly and most won't put up with that or (most likely) simply can not afford to.

And what is this 'below market price' thing? Market price is what the house will sell for, right? No matter what that is, the sales tax will be applied just like it is when you buy a car or a coca cola at the store. No difference. If the total price (sales tax + sales price) is more than the market will bear, then yes: Mr Seller will need to lower his price or not sell. Laws of Supply & Demand do not get suspended.

ForcedTQ says
Seriously? So, what other forms of sales tax do you know of that aren't indirectly paid for as a pass on to the buyer?


You are using a quote regarding taxes on production/added value (payroll taxes for employees, for example) in reference to taxes on consumption. Two different things. The quote can not be interchangeable because the logic isn't.

The buyer does pay the price. The total price as I describe in the above. If the total is too much than the buyer can afford, no sale happens. How many times you've been at the checkout line at WalMart or whatever and the person in front of you has to give up buying stuff because the idiot didn't plan on paying sales tax with the money that they did have? When stores have to figure out their prices, they have to figure on what the total with sales tax will be and how it will effect consumer purchasing decisions/ability to pay. All consumer outlets do. Sellers don't have a lot of leeway in this type of situation.

This is why the Euroweenies and Asia tax the crap out of gasoline. To reduce consumption of it and to capture most of what consumers do spend on it at the expense of the oil producers selling it to them.

Empirical data on property taxation proves this out, too. Higher prop taxes are the lower housing prices tend to be. While that is a tax to just own the property, the buyer is limited in how much his/her 'total' monthly payment will be (mortgage, insurance, and property taxes, etc) and thus how much buyers across the board can afford. Sellers can't really get around this 'limit' imposed.

But it is unconstitutional for the Feds to impose a property tax w/o apportionment so I believe that is why OC went with the tax on housing sales instead. That is a tax on a transaction and thus an indirect tax.

One could argue that the 15% is too high. Fine. 5% might be just dandy. Or even 2%. But it will be ENOUGH to put a damper on all that money printed by the Feds and ridiculous levels of financialization in the housing market right along with the mandatory 20% mortgage down payment in thwarting asset bubbles in R/E at least from happening
16   SunnyvaleCA   ignore (0)   2019 Apr 23, 11:07pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

BayArea says
You guys know what would happen to home prices if you could only buy them in cash?
A 3/2 in Palo Alto would be $475k

The MEDIAN house in Palo Alto is something like $3M. A 20% down payment on that loan would be $600k. So, a person buying in Palo Alto now could certainly pay out more than $475k in cash.

You could say that everyone already DOES pay cash. I get a mortgage from a bank, the bank hands me a huge wad of cash, and I then pay for the house in cash. If you don't consider that "in cash" because a bank is involved, then loans would just go off the books. For example, I might consider loaning a friend $3M so they could buy a house "in cash."
17   BayArea   ignore (1)   2019 Apr 23, 11:43pm   ↑ like (0)   ↓ dislike (0)   quote   flag        

SunnyvaleCA says
BayArea says
You guys know what would happen to home prices if you could only buy them in cash?
A 3/2 in Palo Alto would be $475k

The MEDIAN house in Palo Alto is something like $3M. A 20% down payment on that loan would be $600k. So, a person buying in Palo Alto now could certainly pay out more than $475k in cash.

You could say that everyone already DOES pay cash. I get a mortgage from a bank, the bank hands me a huge wad of cash, and I then pay for the house in cash. If you don't consider that "in cash" because a bank is involved, then loans would just go off the books. For example, I might consider loaning a friend $3M so they could buy a house "in cash."


It’s 2019, people have forgotten what the downturn felt like... what sucker is still putting 20% down these days? Lol

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