Comments on: Government Backed Loans and First Time Homebuyers http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/ Promotional Codes, Coupons & Deals + Money Saving Insights Sat, 26 May 2012 00:58:25 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: World Cup Goals | Money Smart Life http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/#comment-42478 World Cup Goals | Money Smart Life Sun, 13 Jun 2010 17:17:38 +0000 http://frugaldad.com/?p=5577#comment-42478 [...] Government Backed Loans and First Time Homebuyers @ Frugal Dad [...] [...] Government Backed Loans and First Time Homebuyers @ Frugal Dad [...]

]]> By: cna training http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/#comment-42397 cna training Fri, 11 Jun 2010 09:25:56 +0000 http://frugaldad.com/?p=5577#comment-42397 found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later found your site on del.icio.us today and really liked it.. i bookmarked it and will be back to check it out some more later

]]> By: Kate http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/#comment-42382 Kate Thu, 10 Jun 2010 18:00:40 +0000 http://frugaldad.com/?p=5577#comment-42382 My boyfriend and I actually bought our house the old-school way - by working extra hours and living in an inexpensive co-op (him) and working two jobs and living at home (me) to save up a 20% down payment. Although I think that everyone should strive for the 20% down, just for the financial security, I understand that not everyone has the same situation as we did that allowed us to save. For that reason, I think the government backed programs are a great alternative, but I think there should be greater education with regard to the risks of ending up underwater on what is most likely the biggest loan of your life. I know that for government backed student loans, entrance and exit counseling is required - does this type of policy exist for home loans as well? I worry that some people get into these loans not fully aware of the risks and responsilities involved. My boyfriend and I actually bought our house the old-school way – by working extra hours and living in an inexpensive co-op (him) and working two jobs and living at home (me) to save up a 20% down payment. Although I think that everyone should strive for the 20% down, just for the financial security, I understand that not everyone has the same situation as we did that allowed us to save. For that reason, I think the government backed programs are a great alternative, but I think there should be greater education with regard to the risks of ending up underwater on what is most likely the biggest loan of your life. I know that for government backed student loans, entrance and exit counseling is required – does this type of policy exist for home loans as well? I worry that some people get into these loans not fully aware of the risks and responsilities involved.

]]> By: We Almost Bought a Vacation Home http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/#comment-42374 We Almost Bought a Vacation Home Thu, 10 Jun 2010 14:22:29 +0000 http://frugaldad.com/?p=5577#comment-42374 [...] Government Backed Loans and First Time Homebuyers [...] [...] Government Backed Loans and First Time Homebuyers [...]

]]> By: Learn Save Invest http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/#comment-42366 Learn Save Invest Thu, 10 Jun 2010 08:52:26 +0000 http://frugaldad.com/?p=5577#comment-42366 I did like Elle did. I didn't have a large down payment, and was forced to get PMI, but I based the mortgage on my salary alone, not on mine and my fiance's. This ensured that we could easily pay for the house. I have further insurance through my job, that should anything happen to me (ie. disability or death) my mortgage will be fully paid off (I have a semi dangerous job). I guess if you need a government backed loan, then that's what you have to do, but I would suggest against it if possible. I did like Elle did. I didn’t have a large down payment, and was forced to get PMI, but I based the mortgage on my salary alone, not on mine and my fiance’s. This ensured that we could easily pay for the house. I have further insurance through my job, that should anything happen to me (ie. disability or death) my mortgage will be fully paid off (I have a semi dangerous job). I guess if you need a government backed loan, then that’s what you have to do, but I would suggest against it if possible.

]]> By: Frugal Dad http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/#comment-42354 Frugal Dad Wed, 09 Jun 2010 20:59:05 +0000 http://frugaldad.com/?p=5577#comment-42354 I think you did it right. My take on government-backed loans is that they are good for those who don't have much to put down. Of course, you could make the argument that these government-backed programs are what got us into the mortgage mess, at least in part, because no one had any wiggle room when home values fell. I think you did it right. My take on government-backed loans is that they are good for those who don’t have much to put down. Of course, you could make the argument that these government-backed programs are what got us into the mortgage mess, at least in part, because no one had any wiggle room when home values fell.

]]> By: Budgeting in the Fun Stuff http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/#comment-42353 Budgeting in the Fun Stuff Wed, 09 Jun 2010 20:39:28 +0000 http://frugaldad.com/?p=5577#comment-42353 I don't understand apparently. In 2007 we got a 15 year mortgage via WaMu (now Chase) at 5.375% (great rate back then). We put 20% down and had no PMI. Why would a government backed loan have been better? I don’t understand apparently. In 2007 we got a 15 year mortgage via WaMu (now Chase) at 5.375% (great rate back then). We put 20% down and had no PMI. Why would a government backed loan have been better?

]]> By: Jeff S http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/#comment-42346 Jeff S Wed, 09 Jun 2010 16:08:16 +0000 http://frugaldad.com/?p=5577#comment-42346 Great, encourage more government spending. Thanks. Do you realize when property values go down more (which they will), and more people default (which they will), the government will have to print more money to cover the losses in the housing sector. This devalues the dollar and your savings. No bueno for the USA. The private sector demands good credit scores and high down payments to protect themselves. The government can just tax us more an print money when they incur huge losses. You should think more about problems associated with government spending and stop encouraging the use of government programs. Great, encourage more government spending. Thanks. Do you realize when property values go down more (which they will), and more people default (which they will), the government will have to print more money to cover the losses in the housing sector. This devalues the dollar and your savings. No bueno for the USA. The private sector demands good credit scores and high down payments to protect themselves. The government can just tax us more an print money when they incur huge losses.

You should think more about problems associated with government spending and stop encouraging the use of government programs.

]]> By: Ashley http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/#comment-42342 Ashley Wed, 09 Jun 2010 15:06:30 +0000 http://frugaldad.com/?p=5577#comment-42342 Good post, but some of the FHA information is outdated. FHA currently requires a 3.5% down payment, and does not allow buyers to roll closing costs into the loan. The seller can pay closing costs up to 6% of the purchase price (but there is talk that that will be reduced to 3% sometime this summer). Still a great program though! Good post, but some of the FHA information is outdated. FHA currently requires a 3.5% down payment, and does not allow buyers to roll closing costs into the loan. The seller can pay closing costs up to 6% of the purchase price (but there is talk that that will be reduced to 3% sometime this summer). Still a great program though!

]]> By: Matt http://frugaldad.com/2010/06/09/government-backed-loans-and-first-time-homebuyers/#comment-42337 Matt Wed, 09 Jun 2010 12:31:48 +0000 http://frugaldad.com/?p=5577#comment-42337 Nice post. A word of warning, though...friends of ours applied for a USDA loan and were accepted but before the final paperwork went through they were told that the program ran out of money. I don't know if that means in the area they were looking (West Virginia) or the program in general but just be aware that you may not get this type of loan. Nice post. A word of warning, though…friends of ours applied for a USDA loan and were accepted but before the final paperwork went through they were told that the program ran out of money. I don’t know if that means in the area they were looking (West Virginia) or the program in general but just be aware that you may not get this type of loan.

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