We'll never learn

[poindexter]

I am sooo tempted by this program. There are these brand new condos up the road that are around 80K, depending on whether they face the road or not. I can swing the payment and the condo fees. They're less than my rent. I've been so focused on paying down my credit card debt, however, that I have nothing saved for a down payment. The credit would be close to 10 percent down. I could probably get a loan then.

The problem is that people in this situation, who haven't saved for a downpayment - are dead ducks first time home repair hits, job downturn, etc.

 

[Ashy Larry]

As someone living in a neighborhood with foreclosed properties, I hope first-time home buyers do take advantage of the program.

Empty homes don't do anything for my property value.

I hear ya! Personally, I hope only gay couples start moving into my neighborhood.

 

[Grimace]

The problem is that people in this situation, who haven't saved for a downpayment - are dead ducks first time home repair hits, job downturn, etc.

Just put that stuff on your credit card!

 

[sportschick]

I am sooo tempted by this program. There are these brand new condos up the road that are around 80K, depending on whether they face the road or not. I can swing the payment and the condo fees. They're less than my rent. I've been so focused on paying down my credit card debt, however, that I have nothing saved for a down payment. The credit would be close to 10 percent down. I could probably get a loan then.

The problem is that people in this situation, who haven't saved for a downpayment - are dead ducks first time home repair hits, job downturn, etc.

Whatever. Given that my mortguage payment will be less than my apartment rent, I'll be able to save that money toward possible repairs. Not to mention that I pay an extra $500 a month on my credit card, so I can divert that to any repairs, but hey, lets just rag on people trying to improve their situation. It's fun! It gives purpose to our lives!

 

[JackReacher]

I am sooo tempted by this program. There are these brand new condos up the road that are around 80K, depending on whether they face the road or not. I can swing the payment and the condo fees. They're less than my rent. I've been so focused on paying down my credit card debt, however, that I have nothing saved for a down payment. The credit would be close to 10 percent down. I could probably get a loan then.

How long would you plan on living there? Honestly, it wouldn't take long to pay off an 80K condo.

We rent a condo now, and I love the place. The only problem with owning one is that it's more difficult to make home improvements to increase the value of the place.

For 80K, though? I'd do it.

 

[sportschick]

See, I don't know how long I'll be here. Otherwise, I'd probably have already met with a Realtor to start the process. I'm going to nursing school this fall (I can keep my job that way, and not rack up anymore debt), but I don't know that I'm staying after I finish in 2-3 years.

Like I said, it's highly tempting though.

I'll never own a house though. I don't do yard work!

 

[RickStain]

I just hope this program is still around when I get around to homebuying in a couple of years.

Fortunately, my preferred areas of living are very low-cost. $45,000 will get you a decent starter home.

 

[JackReacher]

Fortunately, my preferred areas of living are very low-cost. $45,000 will get you a decent starter home.

That seems so......unreal.

And how the hell can anyone NOT afford a 45K home? Your mortgage would be like $150/month, and that's probably high.

Someone working minimum wage at the local gas station could afford that.

(Not talking about you personally, Rick. I have no idea what you do, etc.....just in general)

Edit: I got curious...a 45K loan (100 percent financing) at 6 percent for 30 years is $259 a month. That's exactly what I pay for my car each month. Insane.

 

[RickStain]

Fortunately, my preferred areas of living are very low-cost. $45,000 will get you a decent starter home.

That seems so......unreal.

And how the hell can anyone NOT afford a 45K home? Your mortgage would be like $150/month, and that's probably high.

Someone working minimum wage at the local gas station could afford that.

(Not talking about you personally, Rick. I have no idea what you do, etc.....just in general)

It's not the mortgage payment. I salivate every time I think about replacing my rent check with that.

It's the down payment and the credit history. I'm getting there, but it's going to take another year or two.

 

[JackReacher]

Fortunately, my preferred areas of living are very low-cost. $45,000 will get you a decent starter home.

That seems so......unreal.

And how the hell can anyone NOT afford a 45K home? Your mortgage would be like $150/month, and that's probably high.

Someone working minimum wage at the local gas station could afford that.

(Not talking about you personally, Rick. I have no idea what you do, etc.....just in general)

It's not the mortgage payment. I salivate every time I think about replacing my rent check with that.

It's the down payment and the credit history. I'm getting there, but it's going to take another year or two.

Go to the bank. Ask for 45K. You'll get hosed on interest, but take that check to the lender or whoever gets it and buy the ****ing house.

Dude, you must have a **** load of debt. Reminds me of my college days....everything, including nightly cases of beer and Domino's....on my credit card. Damn. Those were the good ol' days.

 

[KJIM]

I am sooo tempted by this program. There are these brand new condos up the road that are around 80K, depending on whether they face the road or not. I can swing the payment and the condo fees. They're less than my rent. I've been so focused on paying down my credit card debt, however, that I have nothing saved for a down payment. The credit would be close to 10 percent down. I could probably get a loan then.

The problem is that people in this situation, who haven't saved for a downpayment - are dead ducks first time home repair hits, job downturn, etc.

Whatever. Given that my mortguage payment will be less than my apartment rent, I'll be able to save that money toward possible repairs. Not to mention that I pay an extra $500 a month on my credit card, so I can divert that to any repairs, but hey, lets just rag on people trying to improve their situation. It's fun! It gives purpose to our lives!

I could be wrong, but I don't think that post was meant as spiteful. There's a difference between having money saved up already for repairs and the like and saving money every month to build up the emergency fund.

Home-buying isn't for everyone, and it's not always a good financial decision. I'd hope that the $8k would help people who were already at least toying with the thought of purchasing, not to encourage someone to overextend themselves just because "free money" is available. (Not implying this is you.)

 

[poindexter]

but hey, lets just rag on people trying to improve their situation. It's fun! It gives purpose to our lives!

So disingenuous. God forbid someone talk to you honestly. Take a look a the United States history books of say, 2002-2007. Have you looked around and seen the foreclosures in this country? Our country is littered with properties that were formerly "owned" by people who did not have wherewithal to own a house. Each of these people were told they can be homeowners by people blowing smoke up their ass.

 

[RickStain]

but hey, lets just rag on people trying to improve their situation. It's fun! It gives purpose to our lives!

So disingenuous. God forbid someone talk to you honestly. Take a look a the United States history books of say, 2002-2007. Have you looked around and seen the foreclosures in this country? Our country is littered with properties that were formerly "owned" by people who did not have wherewithal to own a house. Each of these people were told they can be homeowners by people blowing smoke up their ass.

That's a distortion of what happened.

The problem of people who couldn't afford houses owning houses was dwarfed by the problem of people who could afford to own houses trying to afford much bigger houses.

 

[poindexter]

That's a distortion of what happened.

The problem of people who couldn't afford houses owning houses was dwarfed by the problem of people who could afford to own houses trying to afford much bigger houses.

Its not a distortion at all - home "ownership" (and I use that term loosely, since these were home debtors, not owners) went from 64% in 1994 (about where it had been since 1980) to an all-time high of 69.2% later in the decade.

 

[RickStain]

That's a distortion of what happened.

The problem of people who couldn't afford houses owning houses was dwarfed by the problem of people who could afford to own houses trying to afford much bigger houses.

Its not a distortion at all - home "ownership" (and I use that term loosely, since these were home debtors, not owners) went from 64% in 1994 (about where it had been since 1980) to an all-time high of 69.2% later in the decade.

And that 5% jump caused inflation-adjusted median house prices to almost double?

 

[poindexter]

That is not a "5%" percent jump. That's an 8.125% jump. Five percentage points, from 64% to 69.2% isn't a "5%" jump. Or even a 5.2% jump.

There were a lot of factors on why the country is in this mess. People who couldn't afford homes becoming homedebtors is at the top of the list.

 

[RickStain]

That is not a "5%" percent jump. That's an 8.125% jump. Five percentage points, from 64% to 69.2% isn't a "5%" jump. Or even a 5.2% jump.

There were a lot of factors on why the country is in this mess. People who couldn't afford homes becoming homedebtors is at the top of the list.

Okay. Why is an 8.125% jump causing home prices to almost double?

 

[poindexter]

If you think that 64% to 69.2% is a five percent jump, then you aren't going to understand things like leverage and other big-boy math. The percentage of home ownership doesn't have a linear correlation with housing prices. Start at wiki. You are completely correct in that people trying to "own" up was a problem. But adding 5.7 million people who were not able to handle the finances of first time ownership is at the heart of this financial disaster.

 

[RickStain]

If you think that 64% to 69.2% is a five percent jump, then you aren't going to understand things like leverage and other big-boy math. The percentage of home ownership doesn't have a linear correlation with housing prices. Start at wiki. You are completely correct in that people trying to "own" up was a problem. But adding 5.7 million people who were not able to handle the finances of first time ownership is at the heart of this financial disaster.

I know the difference. This isn't a formal environment, I didn't feel the need to be precise. I'm guessing you are going to try to be condescending because you know that your assertion is based on pretty flimsy evidence and you want to bluster through it.

There isn't any proof of what you are saying. At worst, the jump in home ownership was a symptom of the deeper problem.

 

[poindexter]

I know the difference. This isn't a formal environment, I didn't feel the need to be precise. I'm guessing you are going to try to be condescending because you know that your assertion is based on pretty flimsy evidence and you want to bluster through it.

There isn't any proof of what you are saying. At worst, the jump in home ownership was a symptom of the deeper problem.

Really? I'd love read where

Take a look a the United States history books of say, 2002-2007. Have you looked around and seen the foreclosures in this country? Our country is littered with properties that were formerly "owned" by people who did not have wherewithal to own a house. Each of these people were told they can be homeowners by people blowing smoke up their ass.

is a distortion. Lay it on me.