Well, yes. I do not disagree with you at all. But we all know that’s not how things work these days.
I do disagree as to the preferred narrative we should all expect when the time comes.
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I’m doing a VA builder mortgage but mainly b/c they’re “giving” us $25K toward options/costs.
VA fees are also a % of loan amount, so taking the minimal amount out. VA also has buyer protections to protect against corrections while the home is being built.
We shall see if history repeats itself (bought in 2007 in PHX) . I can tell you they’re asking for a lot more docs than NINJA loans.
Buy high sell low? 
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NINJA is still around if you know where to look.
Have done two stated income loans this year - one was a jumbo purchase and the other was a HELOC where the first was at 65 LTV - both were at 10% and had 1-2 points.
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I hear ya. Debating whether to rent out current home while the market “recovers” to last years peak. New build will be ready in Dec
TSMC is building a a huge $40B plant in our area so we do have huge macro level demand. Only question is will new builds will keep up or overshoot like they did in 2008
But it’s not the norm like it was in 2008 and rates are much higher so no “investors”
well I wouldnt pay a mortgage anyway (and mortgage underwriters hate trading “income” so probably they wouldn’t offer anyway), so I guess that’s true. Still, it’s broadly true that these changes are worse broadly for good credits and better for bad credits and I’m not sure what the justification for that is economically. Did bad credits magically get better at paying their debts while good ones got worse?
From your Mortgage Daily article,
What changed, in a nutshell?
The effective penalty for having a credit score under 680 is now smaller than it was. It still costs more to have a lower score. For instance, if you have a score of 659 and are borrowing 75% of the home’s value, you’ll pay a fee equal to 1.5% of the loan balance whereas you’d pay no fee if you had a 780+ credit score. But before these changes, you would have paid a whopping 2.75% fee. On a hypothetical $300k loan, that’s a difference of $3750 in closing costs.
Elsewhere in the spectrum, things got worse. Borrowers with higher credit scores will generally be paying a bit more than they were under the previous structure
which seems to be in line with the article from my link
Mortgage industry specialists say homebuyers with credit scores of 680 or higher will pay, for example, about $40 per month more on a home loan of $400,000. Homebuyers who make down payments of 15% to 20% will get socked with the largest fees. The new fees will apply only to Americans buying houses or refinancing after May 1.
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I have no clue. My beef is with your blanket ‘making houses “more affordable” for people other than you’ statement. The fees are still correlated with risk, just not exactly the same as for the last 15 years (that’s when the matrix was last updated).
Because there is a lot more concern with people not repaying the loans. Imagine that!
Yeah, except they’re correlated less with risk of repayment, and more with risk of media and political favors, probably along with wickedness wokedness, which seems to now be de rigueur.
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The new rules are supposed to go into effect today. Let’s see if they’re tied up in court.
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That article only mentions a letter sent to the president by people who oppose the new rule, not a lawsuit filed in court. How could this get tied up in court?
The people who oppose the rule could sue. The supreme court in West Virginia v EPA already ruled on shenanigans like this. I did not say it was already in court.
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The Supreme Court has taken up a case that could overturn Chevron. A lot of the power of the administrative state like FHFA comes from this misguided decision.
On Monday, the Supreme Court agreed to reconsider its ruling in Chevron .
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I think if it was possible to take this to court, it would have already been done. The rule was announced in January and today it took effect. I suppose it is never too late to sue and get it suspended / reversed temporarily, I just have serious doubts.
My new home build price is up $50K since Jan. and the builder will match any base price cuts per contract
Any links?
Here is one for HELOC. 400k max though. https://www.figure.com/
Then there are the so-called “hard money” lenders, usually local. The realtors who list high end properties usually can refer you to such lenders.
You will pay a higher rate, around 10% as opposed to 5% ARM at banks.
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Here’s some additional commentary on the mortgage market and why the government rather than banks is manipulating home prices by playing politics with mortgages.
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Are VA fees going up too? It’s 1 % of financed amount currently so I might just put more down.
this is similar to ~2007 NINJA loans for poor folks. What could go wrong? History doesn’t repeat but it rhymes. My only question is how much lower, and how fast this time.
My builder keeps raising prices (about 10% over 6 months) I’m protected from swings but only till we move in
Debating whether to rent out current home that would get ~$550K minus closing costs but would get about 2.5K rent.