tag:blogger.com,1999:blog-8586487509647066453.post3975749195016069949..comments2023-07-09T04:20:57.660-07:00Comments on This Goes To 11: The upside of the foreclosure "crisis"Nigelhttp://www.blogger.com/profile/07020740150849916283noreply@blogger.comBlogger8125tag:blogger.com,1999:blog-8586487509647066453.post-88835920923479687402009-02-24T07:51:00.000-08:002009-02-24T07:51:00.000-08:00I usually don't post anonymous comments, but the l...I usually don't post anonymous comments, but the last one brought up an interesting point about loan qualifying.<BR/><BR/>In this particular case, the borrower is using an FHA loan. The rule of thumb on an FHA loan is a debt ratio of 41%, however, FHA is insuring loans as high as 47% if the borrower has an exceptional credit profile (our borrower does).<BR/><BR/>Her current rent is $825 a month. Her new payment, which includes taxes and insurance, will be approximately $975 a month...making her debt ratio 46%.<BR/><BR/>Because she fully documented her income, has excellent credit, showed an ability to save money and has minimal housing payment shock, I am comfortable in assisting this woman in getting a house.<BR/><BR/>Compare this to the crappy loan that the previous owner obtained...according to the recordable documents I was able to see, the previous owners took out first and second adjustable rate loans and put no money down. I'd be willing to bet the previous owners did not document their income or have cash reserves either.Nigelhttps://www.blogger.com/profile/07020740150849916283noreply@blogger.comtag:blogger.com,1999:blog-8586487509647066453.post-36539402352821628292009-02-24T06:02:00.000-08:002009-02-24T06:02:00.000-08:00How can afford this house? The rough rule of thumb...How can afford this house? The rough rule of thumb is 3x annual income equals how much house you can afford. here she bought almost 5x annual income. did she get a grant or something?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8586487509647066453.post-54167672317860498162009-02-22T20:23:00.000-08:002009-02-22T20:23:00.000-08:00As Don King would say, "Only in America!"As Don King would say, "Only in America!"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8586487509647066453.post-14475971834703808842009-02-22T18:50:00.000-08:002009-02-22T18:50:00.000-08:00Great story - thanks Nigel!Great story - thanks Nigel!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8586487509647066453.post-37945260561415351562009-02-22T15:33:00.000-08:002009-02-22T15:33:00.000-08:00Yeah. That's great news. Thanks.Yeah. That's great news. Thanks.Michelehttps://www.blogger.com/profile/17863170906665322968noreply@blogger.comtag:blogger.com,1999:blog-8586487509647066453.post-31083846777647025712009-02-22T14:58:00.000-08:002009-02-22T14:58:00.000-08:00I love people who can save money and accomplish th...I love people who can save money and accomplish things like this. good of you to post this.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8586487509647066453.post-68193941167806793922009-02-22T13:35:00.000-08:002009-02-22T13:35:00.000-08:00Awesome story!-- Feminist(See, I may not like you ...Awesome story!<BR/><BR/>-- Feminist<BR/><BR/>(See, I may not like you but I give credit for a good post where credit is due.)Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-8586487509647066453.post-55568654260397108702009-02-22T09:57:00.000-08:002009-02-22T09:57:00.000-08:00Here's where that scenario gets to me. The previo...Here's where that scenario gets to me. The previous owner, since they are morons, will get a bailout of some sort and our hero, that has purchased a home she can afford, by applying good work ethics, will have a good credit rating and the government will take money from HER to pay for the previous owner's stupidity. Don't believe me? hide and watch.Paul Mitchellhttps://www.blogger.com/profile/07825674914008378242noreply@blogger.com