YAY!!! For the Tax Credit program...........The government has stepped in to help the economy and the Real Estate market. Yes, I have been getting an influx of buyers trying to purchase and meet the deadline. I think this is what we all needed to stir things up in this never ending economic crises.
So NOW the government looks like they're trying to help.
BOO!! For the changes in FHA guidelines. So all young people wanting to better thier lives and become homeowners, are being turned down for mortgages. The government, last year, had raised the credit score limit to 620. They also raised the minimum down payment to 3.5% (where we use to be able to do 2.5 or 3% in some cases). The banks also decided that in the purchase of a "short sale" some will not allow more than 1% seller concessions for closing costs.
So tell me, why is the TAX CREDIT so exposed to make the government look like it's helping, but the changes in the guidelines are not?
And I don't want to hear..................."Well, if your buyer's can't meet those guidelines than they shouldn't be buying". Many of these young people have just been in their jobs for a little over 2 years (another guideline that's understandable), but their incomes are not REAL high. Their savings is good, but NOT enough to cover 3.5% down AND the outrageous closing costs that they have to also come up with. AND, there credit scores might be just a little under 620 BECAUSE they are young and haven't established ENOUGH credit (because they were smart not to get credit cards), or they have a bunch of Student Loans that may not equal a huge monthly debt BUT the number of them decreased their credit score. By old FHA guidelines MANY of the "new generation" buyers would be just fine!
SO, THE MORAL OF THIS STORY IS: Don't applaud the kingdom for helping.......until you've seen the proof! OR When something looks to good to be true.......it is! OR "read between the lines".
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