You've got to be f*()in kidding me - 3% downpayment mortgages are back

[ScubaStevo]

http://money.cnn.com/2014/12/08/real....html?iid=Lead

In an effort to open up lending to more low-income and first time home buyers, Fannie Mae and Freddie Mac announced Monday that they will start backing mortgages with down payments of as little as 3% of the home's price.

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This is disgusting. What could go wrong???

LMFAO

[brighamw]

Hands up!

Don't shoot?

[ThatLankyGuy]

I knew humans had short memories, but wow... I cannot see a single logical problem with this idea.

[ScubaStevo]

Hands up!

Don't shoot?

What we need are more distractions so the government can tear the country down again.

[Dave22reborn]

Think I'll wait for another crash before I think about getting a house.

[ZzBrahh]

The banks always win in these situations fyi

And if they lose the goverment will just bail them out ! Hahahaha gotta love America !!

[seven11]

Hands up!

Don't shoot?

I can't breath?

[anthonymilkins]

Retarded.

Economic conditions globally are virtually parallel to the conditions prior to the '08 crash.

BRB reintroduce policy that contributed heavily to the principal cause of the crash

[squanto]

Maybe they're expecting a bigger reward this time?

[anonymous]

No this is different, they require you take home owner counciling this time and you need Good Credit (a 620 credit score!)

[jacklambert58]

so are the phony inflayed appraisals to support over borrowing.

[GhenghisPWN]

Lmfao










lmfao

[kusok]

Op, I hear ****lia is excepting new arrivals.

[HumptyBrah]

Let's do no money down, **** it

[Anondragon2012]

The American economy needs its dumb consumers.

[BootneckBrah]

They do this in the UK too? Might pick one up next month... fuk it lets make it two yolo

No.


5% is the best you can get.

And you only get it on your first home.

[Anondragon2012]

I wonder what's the profile of buyers who get that 3% mortgage though.
Thats what makes all the difference (though its still damn risky).

[BCalv]

"First time home buyers."

Typically those people aren't going and getting pre approved for 300+thousand dollar homes. It helps the younger generations get into a starter home. Though the credit score req is pretty low.

The fact that when you get pre approved banks want to give you the most they can. Using your gross income... Just lol that's not what you make. They don't consider any other bills you have. That's what gets people in trouble

I got my place with like 5k down including closing cost, under 4% interest. I also bought foreclosed and my property is worth much more than what I bought it for.

This sets me up to sell in 5 years use the cash from selling for a sizable down payment on a much bigger home.

[TheAmericano]

This isn't that bad op.

- what really got people in trouble was they got adjustable rates instead of fixed.

- All the foreclosures that where happening was because people couldn't pay their new monthly payments when interest rates went up. Some people payment doubled!!

Lesson learned
- Get fixed rate
- But really, we all knew to alway get a fixed rate before all that had happened

[xXGHOST23Xx]

This isn't that bad op.

- what really got people in trouble was they got adjustable rates instead of fixed.

- All the foreclosures that where happening was because people couldn't pay their new monthly payments when interest rates went up. Some people payment doubled!!

Lesson learned
- Get fixed rate
- But really, we all knew to alway get a fixed rate before all that had happened

People aren't always that smart. Espcially the ones who are going to take the 3% down mortgage. It's set up to target them, I don't why banks would institute this when there's such a high chance of default.

[SolidOakie]

LOL OP that gif is perfect

[SolidOakie]

People aren't always that smart. Espcially the ones who are going to take the 3% down mortgage. It's set up to target them, I don't why banks would institute this when there's such a high chance of default.

I am no real estate expert, but I know banks aren't keen to the real estate business, they're keen to the money business. Sell the home, seize the home, sell the home again.

[vvvaaa]

No.


5% is the best you can get.

And you only get it on your first home.

The thing is that they almost don't care what kind of income you've got...or whether you've got any as long as you've got the money for the deposit 5% and you hire one of the firms that do all the fake docs for you. I've seen people who haven't paid 1p tax in the last 10 years get homes. London's going to crash in the next 5 years when they hike the %

[frankenstein78]

Boomerang bitches!!

[LankedOut]

3 per cent!? I have to save 20% to get a loan.

[tng83]

OP mad I'm using the VA through GMFS to get a 0 down mortgage on a 181k dollar brand new home.

[tng83]

3 per cent!? I have to save 20% to get a loan.

How many 20-something newlyweds out there can afford to save 40 grand for a down payment while also paying rent somewhere? If you're credit is good banks shouod loan what you need based on appraisal and your income.

And variable rate sub prime mortgages with little to no income verification is what contributed to the housing bubble. Not necessarily no down payments.

[frankenstein78]

How many 20-something newlyweds out there can afford to save 40 grand for a down payment while also paying rent somewhere? If you're credit is good banks shouod loan what you need based on appraisal and your income.

Plenty of people have always been able to get a home with less than 20% down. They simply have to carry mortgage insurance.

[ScubaStevo]

No this is different, they require you take home owner counciling this time and you need Good Credit (a 620 credit score!)

Oh, silly me.

LMFAO

[nutsy54]

"First time home buyers."

Typically those people aren't going and getting pre approved for 300+thousand dollar homes. It helps the younger generations get ... much deeper into lifelong debt.

Fixed it for ya...