CA Mortgage Company announces "no mortgage payment for 1 year" loan - "12MoDef"

[Babyblue]

I hope this post is in jest.

I was a mortgage banker in a previous life (1980's) and watched so many people who really just wanted a home of their own go down in flames because they would do anything to achieve the dream, instead of either waiting until they really could afford it or working with a reputable mortgage lender who understands that market and knows all of the REAL products which are out there to give folks a leg up into home ownership.

For all of the whining we have heard from our County Commissioners about affordable housing, have you seen them mention the Florida first time home buyers program ONCE? Do you see them pushing to get more folks to try VA loans, since so many buyers here are eligible? No, they want to build 1100 SF pieces of crap on a spray field in Freeport.

Just a pet peeve of mine. There are good, solid, legitimate ways to get marginal buyers into homeownership, they just aren't very PROFITABLE for the lenders.

No joke. I was a lender at AmSouth in the 80's as well. A lender who offers this type of product would surely escrow the payments to ensure repayment. That is done all the time in the commercial world. This is just drifting into the residential side of life. 40-45 100 year mortgages are here already. Higher the price the longer the term. Who can afford a 2 million dollar home on every street down here? Last I counted a million was a lot of cash.

 

[destinsm]

I hope this post is in jest.

I was a mortgage banker in a previous life (1980's) and watched so many people who really just wanted a home of their own go down in flames because they would do anything to achieve the dream, instead of either waiting until they really could afford it or working with a reputable mortgage lender who understands that market and knows all of the REAL products which are out there to give folks a leg up into home ownership.

For all of the whining we have heard from our County Commissioners about affordable housing, have you seen them mention the Florida first time homebuyers program ONCE? Do you see them pushing to get more folks to try VA loans, since so many buyers here are eligible? No, they want to build 1100 SF pieces of crap on a spray field in Freeport.

Just a pet peeve of mine. There are good, solid, legitimate ways to get marginal buyers into homeownership, they just aren't very PROFITABLE for the lenders.

Look at the income requirements for the Florida first time buyer program... Household with 3 or more people in it in Walton county can not make more than $63,020 salary... yet you can qualify for a purchase price of up to $370,533... Looks like the only thing the Florida first time home buyer program can do for someone in Walton county is enter them into a life of serfdom...

http://www.floridahousing.org/Home/default.htm

 

[SHELLY]

Great idea and product. Surly will help those in need. But that would not apply to anyone here, right Shelly?

At this point, those "in need" are in the housing biz. <And don't call me Shirley>


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[SHELLY]

There are good, solid, legitimate ways to get marginal buyers into homeownership, they just aren't very PROFITABLE for the lenders.

Let's face it...it's not like those boiler-room cheeseballs are going to go back to their professorships at Wharton once the re-fi game ends.


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[Mango]

Look at the income requirements for the Florida first time buyer program... Household with 3 or more people in it in Walton county can not make more than $63,020 salary... yet you can qualify for a purchase price of up to $370,533... Looks like the only thing the Florida first time home buyer program can do for someone in Walton county is enter them into a life of serfdom...

http://www.floridahousing.org/Home/default.htm

It appears you were looking at the maximum income limits for the HAMI loan whose guidelines were they would lend $5K toward closing costs if your income did not exceed the 63,020 max. for Walton County.

The $370,533 was the maximum loan amount for the HOME loan which offered $14,999 for high cost counties. But then when you look at the maximum income limit for that program for 3 in the household the maximum income limit was $36,400. So basically it appears they are saying, we'll lend you $14,999 if you buy a house in Walton County up to whatever someone would qualify for with an income of $36,400.
Which means this program is not available to anyone purchasing in Walton County unless they haven't owned a primary residence for 3 years and have a few hundred thousand floating around for downpayment and decided to borrow 14,999.

Makes no sense to me at all.

We have similar programs in New York, but they are offered by the Banks to meet CRA requirements (Community Reinvestment Act) which means they got slapped on the wrist during an audit for not making enough minority loans or loans in minority neighborhoods.
But you can actually get someone in a house with a low downpayment with these loans in my State. They often will make the loan to anyone with any income if they are buying a home in a neighborhood with greater than 50% minority population.

The second mortgage loans for DP assistance that Florida Corp. are making do not work at all in Walton County.

I am not sure if any Banks have programs that offer lower rates for 1st mortgages to people with moderate incomes like we have here in NY.
I know some of the Banks offer the same loan we have here in New York in Miami/Dade County. (HSBC Bank) but other than that County, I do not know.