Zillow Advice: FHA and VA Loans - Should the Government bring back the FHA down payment assistant program ? http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ Zillow Advice | Zillow Real Estate Consider the number of people ... http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ Consider the number of people out there willing to walk away from houses <em>who put down 20%!!!.<br/></em> Mentality is "hey, the house isn't worth what I owe on it...why should I keep on paying?...I'll just walk away from my obligation and let the bank eat the loss".<br/>Yes, it's hard to save money for that down payment and closing costs...but owning a house is <u>not</u> a right guaranteed by the gov't folks.<br/>And these DPA programs are a shell game, it just took a declining market for <a href="http://www.zillow.com/fha-loan/">FHA</a> to figure that out. Mon, 16 Feb 2009 00:51:00 GMT http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ 2009-02-16T00:51:00Z The "PRO DPA" peeps never ... http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ The "PRO DPA" peeps never seem to read any statistics when they get up on the box&nbsp; 16+% default rate&nbsp;&nbsp; (When unemployment was sub 4%).&nbsp; It was abused by INV and Builders trying to unload/CASHOUT of properties.&nbsp; Yes, Sellers and Builders CASHING OUT&nbsp; of their inventory.&nbsp; We cut off those <a href="http://www.zillow.com/mortgage/">loans</a> so they simply would "sell" them with no money down.. It's JUNK.&nbsp; We all know it, but there is there is always the ABC Home Makeover DPA story that we hang an entire government lending program on:&nbsp; You know, the vibrant school teacher who walks to work everyday teaching underprivileged kids and stayed afters school to tutor (to make ends meet).&nbsp; One day, she was moonlighting as the county mechanic on the schoolbusses changing tires and the jack collapsed severing her 2 legs and left arm.. Now, back in class, she rides a skateboard to work, but wants a home.... and needs DPA.....&nbsp; Can I make a more ridiculous KLEENEX moment to avoid the billions of criminal activity???&nbsp;&nbsp; The program had good intentions and was hardly used (when it was good)... then needed when <a href="http://www.zillow.com/fha-loan/">FHA</a> dominated the lending market (Subprime part deux) and now that all the old DPA loans are REPOed...&nbsp; we get the silly (without factual credibility) bottle rocket pleas for reinstatement.. Find me a paying borrower and we'll get them a <a href="http://www.zillow.com/mortgage/">loan</a> somewhere, somehow.&nbsp; Keep rockin'. Sun, 15 Feb 2009 21:14:00 GMT http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ 2009-02-15T21:14:00Z This is a tough question ... http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ This is a tough question acutally as there are two schools of thought.&nbsp; I personally think a compromise could be made that you must have a minimum credit score(let's say 650 for conversation's sake) to qualify for downpayment assistance AND take a homebuyers course to be eligible or as the other poster's have stated create a 100% <a href="http://www.zillow.com/fha-loan/">FHA</a> program.<br/><br/>Al Norman<br/>Branch Manager<br/>Primary Residential <a href="http://www.zillow.com/mortgage/">Mortgage</a> Inc.<br/>www.theprimaryteam.com Sun, 15 Feb 2009 18:20:00 GMT http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ 2009-02-15T18:20:00Z my 2 cents.I believe unemployment ... http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ my 2 cents.<br/><br/>I believe unemployment has caused most of these <a href="http://www.zillow.com/fha-loan/">FHA</a> defaults. I'm in Ohio and us and Michigan have lost soooooo many jobs over the last 5+ years, mainly manufacturing jobs.<br/><br/>Also, Ohio and Michigan have by far the most FHA defaults (aka HUD homes)<br/>When you compare the number of FHA's originated in a State vs. the number of FHA defaults in a State...the higher default States seem to also be the higher job loss/unemployment States.<br/><br/>Again, I'm only speaking of FHA defaults...we all know FHA has very favorable terms for the <a href="http://www.zillow.com/mortgage-glossary/Borrower/">borrower</a>. But you still need a JOB to make any payment.<br/><br/>I think at least there should be a DPA allowed that corresponds to the borrowers overall credit profile OR higher risk FHA borrowers that use DPA pay a little more in the <a href="http://www.zillow.com/mortgage/help/Private-Mortgage-Insurance.htm">mortgage insurance</a>. Something could be used so everyone is not punished.<br/>Also, if DPA is used, something does need to be put in place to limit inflated appraisals.<br/><br/>Either way, some "tuning" to DPA could have been done rather than sending it to the "scrap yard"<br/> Wed, 11 Feb 2009 13:13:00 GMT http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ 2009-02-11T13:13:00Z A part of me says yes but ... http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ <p>A part of me says yes but the facts say no.<br/><br/>DPA programs have up to 6 times the default rate than buyers that actually have skin in the game.<br/>&nbsp;<?null xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /?></p><p>However I think it will come back because there is a huge lobby behind it.</p> Wed, 11 Feb 2009 05:27:00 GMT http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ 2009-02-11T05:27:00Z "HUD's mission is to increase ... http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ <em>"HUD's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination."</em><br/><br/>Political pressure to put low-income people into houses was a large part of what got this RE bubble rolling, let's not repeat that mistake.&nbsp; With prices still falling, it's a risky time to be borrowing to buy RE, anyway; but trying to pull in marginal buyers for the sake of fees and commissions is just shameful. <br/><br/>While prices are still falling, today's 100% LTV <a href="http://www.zillow.com/mortgage/">loan</a> -- whatever institution offers it --creates tomorrow's upside-down buyer.&nbsp; You're just asking for future waves of defaults if you start selling houses to every penniless rube with a job.<br/><br/><br/> Wed, 11 Feb 2009 05:09:00 GMT http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ 2009-02-11T05:09:00Z There may be a place on the ... http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ <p>There may be a place on the menu for a 100% LTV <a href="http://www.zillow.com/mortgage-glossary/HUD/">HUD</a> <a href="http://www.zillow.com/mortgage/">loan</a>. I could live with a well written program that leaves off the "shell" game of the referenced DPA programs.</p> Wed, 11 Feb 2009 01:57:00 GMT http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ 2009-02-11T01:57:00Z The real question is "why ... http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ <p>The real question is "why doesn't FHA have 100% financing?" They said they were going to roll it out, but never did.<br/><br/>Before you go off about how there should be no 100% financing, consider this: VA has 100% financing. No monthly <a href="http://www.zillow.com/mortgage/help/Private-Mortgage-Insurance.htm">mortgage insurance</a> premiums. And the funding fee can be rolled into the loan.<br/><br/>USDA has 100% financing. No monthly insurance premiums. And their Upfront <a href="http://www.zillow.com/mortgage-glossary/Mortgage-Insurance-Premium-%28MIP%29/">Mortgage Insurance Premium</a> can be rolled into the loan.<br/><br/>So, if VA and USDA, both government <a href="http://www.zillow.com/mortgage/">loan</a> guarantee programs by the way, can offer 100% financing, why can't FHA do the same? HUD's mission is to increase homeownership, support community development and increase access to affordable housing free from discrimination.<?null xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /?></p> Wed, 11 Feb 2009 01:36:00 GMT http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ 2009-02-11T01:36:00Z it = is&nbsp;&nbsp;&nbsp; ... http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ it = is&nbsp;&nbsp;&nbsp; &nbsp;that edit button is just for show, right? Wed, 11 Feb 2009 01:22:00 GMT http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ 2009-02-11T01:22:00Z Jimmy, what it that, a Gretsch, ... http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ Jimmy, what it that, a Gretsch, Gibson? Wed, 11 Feb 2009 01:19:00 GMT http://www.zillow.com/advice-thread/Should-the-Government-bring-back-the-FHA-down-payment-assistant-program/198008/ 2009-02-11T01:19:00Z