This housing market sucks!!

[silvy1200]

Just found out our home purchase is going to fall through!  The lender is asking for an additional 5% down because the home is in a declining market. Don't have the extra cash. We recently sold our home in Chicago and had to pay up quiet a bit, was under about 40 grand. Figured we would pay up before it declined even more and be done with it so we can purchase in San Diego. Was able to come up with 3 % down and using a FHA loan, but now they are asking for 5 % more. They should of told us this shit before we even made an offer!  So pissed! 

[darylbowden]

No offense, but if you can't come up with even 8% of the asking price, you probably shouldn't be buying the home just yet.  I, personally, have made a deal with myself that I won't go in with any less than 10% down.  If I can't come up with 10%, then I'll keep saving 'til I can.

[Grampa]

No offense, but if you can't come up with even 8% of the asking price, you probably shouldn't be buying the home just yet.  I, personally, have made a deal with myself that I won't go in with any less than 10% down.  If I can't come up with 10%, then I'll keep saving 'til I can.

good advice

[mitt]

No offense, but if you can't come up with even 8% of the asking price, you probably shouldn't be buying the home just yet.  I, personally, have made a deal with myself that I won't go in with any less than 10% down.  If I can't come up with 10%, then I'll keep saving 'til I can.

+1 - this is the practice that got the markets into the current mess in the first place.  Not long ago, 20% down was the standard.

mitt

[darylbowden]

+1 - this is the practice that got the markets into the current mess in the first place.  Not long ago, 20% down was the standard.

mitt

Yeah, and if I didn't live in LA where prices are astronomical, I would adjust that figure to 20%.  If I lived in Texas or somewhere else where housing is cheap, 20% would definitely be my minimum.

[ROBsS4R]

My house is worth less than when I bought it in 2001 

[silvy1200]

we did save up for the down payment here in san diego, but as I said we had to use that when our house in chicago was sold.

now our relocation benefits are expiring soon and will not be able to have our purchase expenses paid after. so that is the hurry.

[silvy1200]

Yeah, and if I didn't live in LA where prices are astronomical, I would adjust that figure to 20%.  If I lived in Texas or somewhere else where housing is cheap, 20% would definitely be my minimum.

yeah, i could of bought a few acres there. but texas is not so desirable to me.

[sno_duc]

+1 - this is the practice that got the markets into the current mess in the first place.  Not long ago, 20% down was the standard.

mitt

We bought our first house in 89.
Is it just me or have lenders gotten really lax. The first time they wanted 3 years of tax returns, the last "you got a job" 'yup' "good enough"
The first time 15 or 20 % down, the last the earnst money ($ 1,000) was good enough.

[FatguyRacer]

I put 4% down for FHA 10 years ago when i bought my house. 30 year fixed 6.5% 3/4 point in 1998. Houses were not overvalued then. Now my house is worth 2.5x what I paid even in this crummy market. I've kinda make the beast with two backsed myself a bit for using my home as an ATM machine with refis. Every extra dime I make goes to paying off debt. I got 4 years to go and I'm debt free. The only thing that im glad for was insisting on fixed rate mortgages on my refi's.

I thought only 1st time buyers qualified for an FHA backed loan?

[jdubbs32584]

We bought our first house in 89.
Is it just me or have lenders gotten really lax. The first time they wanted 3 years of tax returns, the last "you got a job" 'yup' "good enough"
The first time 15 or 20 % down, the last the earnst money ($ 1,000) was good enough.

Yes lenders got lax (or predatory). Thats why there is this whole Subprime Mortgage/Foreclosure Crisis thats been everywhere on the news for the past two years.

[mitt]

Yes lenders got lax (or predatory). Thats why there is this whole Subprime Mortgage/Foreclosure Crisis thats been everywhere on the news for the past two years.

Maybe this link from the DMF politics forum 'subprime primer' needs to posted here too:

http://docs.google.com/TeamPresent?docid=ddp4zq7n_0cdjsr4fn&skipauth=true&pli=1

mitt

[r_ciao]

Welcome to California.  At least the weather is better.  San Diego has some of the country's best weather.  Enjoy the ride. [moto]

[Grampa]

Welcome to California.  At least the weather is better.  San Diego has some of the country's best weather.  Enjoy the ride. [moto]

was there last weekend....weeeeeeeeeeeeeeeeeeeeee  [moto]

[mitt]

My house is worth less than when I bought it in 2001 

where are you located?

mitt