[jpk]

Originally Posted by sam_i_am

How do you think the Vegas housing market will be affected by the new housing bill, specifically, the lack of down payment assistance? I've read that as much as 80-90% of all recent loans were made with down-payment assistance.

Look, folks are going to have to get used to the old fashioned way of buying a house again. You actually have to have money saved up for a down payment. And you have to have a real job. You have to pay down principal each month.

People actually believed they could get something (like a house) for nothing. Same mentality that said buying any stock on the NASDAQ that ends with the name "dot-com" will make them into an overnight millionaire.

What is interesting is that you had a lot of folks who used to complain it was too hard for poor people to qualify for a mortgage. So rules were relaxed, opportunities were made available, and home ownership took off. Now folks realized there was actually a good reason you don't give poor people a mortgage - people are poor for a reason and tend to not pay their bills!

The market will stabilize and house flipping will be left to a small minority as a result of these new rules.

[olecapt]

Originally Posted by sam_i_am

How do you think the Vegas housing market will be affected by the new housing bill, specifically, the lack of down payment assistance? I've read that as much as 80-90% of all recent loans were made with down-payment assistance.

Improbable. Remember you can't work DPA on a REPO. You need a seller with some money. That is 2/3rds of the market. DPA is mostly a new builder technique. REPOs and most deals today give closing costs...but that is not actually effected.

So I don't know where that whole thing came from. I have heard it too by the way...but it is flatly incorrect.

[Daddys///M3]

Originally Posted by sam_i_am

How do you think the Vegas housing market will be affected by the new housing bill, specifically, the lack of down payment assistance? I've read that as much as 80-90% of all recent loans were made with down-payment assistance.

I don't know where you read this but I don't think it is correct. About 40% of all FHA originations this year have used seller funded down payment assistance. Considering that around 30% of all new originations were FHA originations, that puts the national number of originations with DPA's at around 12%. Bear in mind that these numbers are not hard stats, but thrown together from various sources as it's extremely difficult to pin down exact numbers pertaining specifically to the subject at hand. Of course these are national estimates and don't necessarily represent the local picture either. However, of the 3 FHA purchase money loans that I am working that were originally structured to use a seller funded DPA, all 3 have come up with or are coming up with the down payment money themselves. I don't necessarily think that the elimination of the DPA's eliminates buyers per se, but does eliminate the "gotta have it right now with zero effort" mentality. That being said, H.R. 6694 has been introduced into the house and once Congress starts up it's sessions again I'm sure that there will be much more discussion. Hopefully it is beneficial discussion and not finger pointing, rabble rousing, and skewed stats.

[AA702]

Originally Posted by jpk

Look, folks are going to have to get used to the old fashioned way of buying a house again. You actually have to have money saved up for a down payment. And you have to have a real job. You have to pay down principal each month.

People actually believed they could get something (like a house) for nothing. Same mentality that said buying any stock on the NASDAQ that ends with the name "dot-com" will make them into an overnight millionaire.

What is interesting is that you had a lot of folks who used to complain it was too hard for poor people to qualify for a mortgage. So rules were relaxed, opportunities were made available, and home ownership took off. Now folks realized there was actually a good reason you don't give poor people a mortgage - people are poor for a reason and tend to not pay their bills!

The market will stabilize and house flipping will be left to a small minority as a result of these new rules.

I wouldn't say poor people do not pay their bills. Its really people that are irrespoinsible and spend money beyond their means are those ones who do not pay their bills and get caught up. I know people that are in the poor catagory, and they are confortable just renting and living within their means and living smart. I actually envy those types because they actually have time to spend with their families instead of working and working just to cover bills to support their lifestyle of endless debt.

[MomMom]

Streak of home-sales increases stopped

Las Vegas snapped its seven-month streak of increasing home sales in August, the Greater Las Vegas Association of Realtors reported Tuesday.....


ReviewJournal.com - Business - Streak of home-sales increases stopped

[VegasResident]

Originally Posted by MomMom

Streak of home-sales increases stopped

Las Vegas snapped its seven-month streak of increasing home sales in August, the Greater Las Vegas Association of Realtors reported Tuesday.....


ReviewJournal.com - Business - Streak of home-sales increases stopped

Sounds like the foreclosures might be getting more....should we say distressed? And good ones are disappearing. Regular old owners are not selling unless they have too. Plus school is now underway and the summer flocking is over.

[jpk]

Originally Posted by AA702

I wouldn't say poor people do not pay their bills. Its really people that are irrespoinsible and spend money beyond their means are those ones who do not pay their bills and get caught up. I know people that are in the poor catagory, and they are confortable just renting and living within their means and living smart. I actually envy those types because they actually have time to spend with their families instead of working and working just to cover bills to support their lifestyle of endless debt.

You're right, I meant to say "poor people with bad credit". Folks who don't have any money but aren't looking to live beyond their means aren't the problem. Folks who wanted to live beyond their means were the problem. Getting a Cadillac when you can't afford a place to park it is one thing. Getting a house to park your Cadillac when you can afford neither is something the banks should never have allowed you to do.

And the folks who you say aren't poor but are working to support endless debt are actually poor. House poor, car poor, or whatever they are working to pay for. They clearly own less than they owe and are in worse shape than someone that makes less money but has no debt.

[olecapt]

Originally Posted by MomMom

Streak of home-sales increases stopped

Las Vegas snapped its seven-month streak of increasing home sales in August, the Greater Las Vegas Association of Realtors reported Tuesday.....


ReviewJournal.com - Business - Streak of home-sales increases stopped

It has flattened but no way stopped. This is the normal seasonal variation. From now to December/January things drop and then start back up in February. My view though is September is going to be similar to August and October will not be off much. So seasonally adjusted we are running at one hell of a sales rate. I would not be surprised to see us continue very high rates right throung until spring.

The real question is are the prices going to stop dropping? As of now they show no sign of it. Yet it is hard to believe that volume can be so high and the bottom so combative and price continue to decline.

Who knows? Nobody has been in a market that behaves like this one so I don't think there is any knowledgable advice. Wait for a trend and hope it continues I suppose.

[sam_i_am]

Thank you Olecapt and Daddy for the information. I read the stats from a recent RJ article. Of course the person being quoted does not substantiate his claim with anything other than anecdotal evidence, but I do not dismiss it entirely. Here is the exact quote:


There is one obstacle looming for housing recovery, Mark McGarry of First United Mortgage said. Although sales have increased, 80 percent to 90 percent of those purchases were made with down-payment assistance that will become obsolete in October, he said.
The Federal Housing Administration has distorted the numbers, claiming that only 40 percent of FHA-insured loans use such assistance, McGarry said. He's talked to appraisers, Realtors and title company officers and they all come up with much higher figures.

Olecapt, I have heard of people buying REO's with FHA+ameridream.

[olecapt]

Originally Posted by sam_i_am

Thank you Olecapt and Daddy for the information. I read the stats from a recent RJ article. Of course the person being quoted does not substantiate his claim with anything other than anecdotal evidence, but I do not dismiss it entirely. Here is the exact quote:


There is one obstacle looming for housing recovery, Mark McGarry of First United Mortgage said. Although sales have increased, 80 percent to 90 percent of those purchases were made with down-payment assistance that will become obsolete in October, he said.
The Federal Housing Administration has distorted the numbers, claiming that only 40 percent of FHA-insured loans use such assistance, McGarry said. He's talked to appraisers, Realtors and title company officers and they all come up with much higher figures.

Olecapt, I have heard of people buying REO's with FHA+ameridream.

It is not impossible. But I have not seen it. I would think some lender would have to sign up as a seller. The money has to have a source.

I can't see any of the big loan servicers doing it...hell they won't pay for a lightbulb.