Home Buying in 23451>Question Details

Leah, Home Buyer in 23518

Does the new housing law passed by Congress (eg the 625,000 max conforming loan) help us here in VA?

Asked by Leah, 23518 Sun Aug 3, 2008

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The bail out is garbage, and is a scam. We don't need higher loan limits. It will not help the fact that the housing prices are going to decline. Prices are detached from incomes, and this *WILL* correct. Nothing, outside of hyperinflation, is going to help prices. They are going to go revert to 2001 prices or lower. Look at Credit Suisse's ARM reset chart. Look at the prime and alt-a loans. We're still highly likely to see some large banks fail. America's supposed standard of living is going to fall. It was supported by debt. Game over. If you can only come up with a 3% down payment, you shouldn't be buying a house.
0 votes Thank Flag Link Fri Aug 22, 2008
Remember that the FHA has also raised the downpayment required from 3% to 3.5%. So if you are looking to push your purchase price up to take advantage of the "permanent" increase of the FHA loan know that it will cost you more to get into that home now. Make sure you are working with a buyers agent and a lender who will help you look at all of the costs associated with buying a new home.
Web Reference: http://varealestatetalk.com
0 votes Thank Flag Link Mon Aug 4, 2008
Leah - loan amounts between $417K and $625K are referred to in the industry as "jumbo light". It helps a little... not a lot. They've been around for a bit, and this bill just made it permanent.

Quite honestly the Fannie/Freddie bail out is what that bill was all about (and we NEEDED it to keep money flowing); and pretty much everything else in it was to keep the media guessing and talking so the consumers didn't scream about the bail out.

Today, I was taking my 5 year old out school shopping (tax free shopping weekend!), and we waited until the 2 year old was distracted playing with dad, and then we left. That was bad on a lot of levels; but the reason I bring it up is that is how the government treats the consumers - they distract you with silly details -"hey, look at that credit for home buyers", meanwhile they do stuff you wouldn't approve of, right behind your back. They should just tell us the truth - "we have to bail out Fannie and Freddie, or you will have no money - you'll have to pay back your current mortgage, in full, and all your credit cards, immediately; because the banks are going to be completely out of money."

Bet Americans wouldn't like that! And, then, the government would have to explain how it got that way and what they should have been doing to protect you.... but things were going so well... and you (Mr. & Mrs. Consumer) would not have agreed to allow the government to make changes then to help us later. We are a society demanding INSTANT gratification - microwaves, faxes, emails, the evidence is EVERYWHERE. It's what WE do, we want something and we want it NOW. And, "if it ain't broke, don't fix it" - in other words, "don't tell me its about to rain so I can roll up my windows, right now the sun is shining so leave me alone!" We don't plan for the future, we don't think things through, and we don't listen to those that do.

The government treats us like children - and, in majority, we act like children. So, there you have it.

No, this bill will not bring you many, if any, benefits. But, it had to be done.
0 votes Thank Flag Link Sun Aug 3, 2008
Hi Leah - in Hampton Roads, the first time homebuyer credit will probably help us more than the other articles in the bill. The $7500 credit is a good incentive for 1st time homebuyers and while it has it's faults, the end purpose will hopefully justify the means.
Web Reference: http://www.tinamerritt.com
0 votes Thank Flag Link Sun Aug 3, 2008
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