Yes. My first home loan was through FHA. 3% down. Ended up being about $7500. Mortgage payment was $1200 or something like that. Less than my rent at the time.
BTW it’s up to 25k.
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It’s a silly question.
That’s like asking can Amazon afford to lease a building if we have to give them tax breaks?
Can Exxon Mobil afford to drill and refine oil if we don’t subsidize it?
Can Elon afford to manufacture cars if we don’t subsidize it?
Republicans only care about subsidizing the common man… but when it comes to tax breaks for the rich? Nah they need it!
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But is she proposing a tax break? Or the government buying part of your house for you?
What?
Any down payment on a home is “instant equity”.
Is there a material difference?
Yes. In one case the government is letting me keep more of my money to buy something, in the other the government is taking money from you and using it to buy something for me.
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One would have thought people would have remembered what happened in 2007 when people had houses they couldn’t afford the bubble burst.
Except this time when people lose their jobs in a recession they won’t have a $1000 mortgage but a $5000 monthly mortgage. The bubble of all bubbles will eventually pop. I sadly believe future home ownership is a thing of the past or maybe the top10%.
You never hear politicians talk about cuts anymore it’s like they don’t even try.
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Either way…. The government lost 25k.
Yes, it seems many have forgotten the lessons of 2008.
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I’m not concerned about the government’s bottom line.
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We are not giving out bad loans like we were in 2007.
Not having a down payment does NOT correlate with your ability to pay a monthly mortgage.
Then why would you be concerned with “up to” 25k down payment?
I’m concerned about taking money from one person and using it to buy another person’s house. And I disagree that being unable to save a down payment doesn’t correlate to loan repayment rate.
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Because it sounds economically dangerous to lure people who can’t afford a mortgage (and there’s more to a mortgage than just your note, you got to factor in maintenance and repair costs and all that good jazz) into a situation where they can easily destroy themselves financially.
I hate to say it, but not everyone is cut out to own a house. I don’t even own a house because I know how to do all the work on a trailer myself but I don’t have any experience with a house.
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Then consider it taking from your own future tax burden. Does that make it better?
How so?
Not having a down payment today doesn’t mean I can’t pay a mortgage today.
As a matter of fact.. if I could avoid paying a down payment I would… even if I had the cash in the bank.
Example…
Selling price of a home in CA is 840k. 3% down would be approximately 25k. This would bring my loan to 815k
My mortgage payment (w/0 taxes) would be approximately $4880 a month (at 6%).
W/O a 25k down payment? It would be ~$5000.
That’s a difference of $120 a month.
With either mortgage I’d need to make about 12k a month to afford it.
It’s still giving people who can’t afford housing and incentive to get into housing.
I wish a politician would just come out and level with the American people and say we’re broke, we ■■■■■■ up, we have to cut back on the handouts. They just keep on pumping that bubble hoping their not the ones in charge when it finally pops.
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which will just be 25K when the dust clears. The only thing this is going to do is get buyers bidding up the price by 25K. What do they care, it’s not their money.
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its a little more instant when its not your money
As a seller, how would I know that the buyer got a 25k down payment assistance?
I don’t care as a seller