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Fannie Mae, FHA, & VA Guidelines

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Re: Fannie Mae, FHA, & VA Guidelines

so if someone is still in school and all their student loans are in deferrment, then what? I cant leave school in the middle of a doctoral dissertation... so then does that 2% thing apply.. and exactly how is that calculated... where can I figured that out. Looking at info online, I should qualify for a FHA, with a pretty decent amount that I can borrow... my dti ratio was very low.. like 11% I think... how does the 2% thing factor in?

Established Member

Re: Fannie Mae, FHA, & VA Guidelines

I have to agree with the OP. When I first heard about FHA, I too thought it was easier. Not! You'd have an easier and cheaper time doing a 3% conventional than the FHA considering all the hoops.

It seems to be more of a deterrent than a we want to help young families and public service professionals. I will give you an example from personal experience. My wife wanted to teach Math, but we calculated between home prices in FL being 180-225k easily, her 58k in student loans and 40k in pay, along with two CCs, there is no way in hell she'd be able to get approved.

Home prices and student loans alone completely kill the DTI percentages (as far as keeping them low). One can buy a home with FHA but it's FAR from easy like many in MSM Finance articles try to sell. OP's makes a great point.

I think we are seeing the continued effects of 2008 financial crisis and MANY potential first time home buyers are paying. My wife's an Accountant so she is always telling me about this stuff.

I will reach out HUD for MD. This is an issue that needs to be addressed for sure with legislation.
Established Member

Re: FHA's discriminatory rule, Oct. 2015, student loan debt DTI at 2% monthly

I think often timeswe are quick to pass blame on the consumer when financial institutions and the same federal governement who played a HUGE role in the financial crisis of 2008 were largely at fault. And guess who paid them, when they "defaulted" their investors(who are comprised of taxpayers/not just big fat cats on wall street/regular people who followed the rules and were screwed by a fraudulent system).

 

FHA is no more than a governemt "controlled"  deterrent [kinda makes you wonder which party is for "the little guy"?]. Its not meant to help the little guy. I quite frankly do not understand why people coninue to peddle this idea? MOST can only use this with the help of family,friends and government subsidies(also paid by other tax payers) But what about the middle class that makes too much for this but not enough to be considered well off[I call this the housing donut hole but theres no "part D" fillers]. Fannie Mae and Freddie Mac wil cause another housing bubble due to their OVER reactions via regulations. As interest rates rise, what the borrower can get approved for now goes down and simultaneously home prices will continue to rise while rent prices skyrocket which makes even the most financially responsible person harder to save for a down payment[would an average 5-10 years which means the house you started saving for5-10 years ago depending on the location is now 100k more than it was before and the 3.5%,5%,20% you saved is NOW not enough). Also, DPA programs have income limits, typically given in high property tax proned areas (common for city living where home prices are high) so I don't see how this is supposed to help the average joe making 55k[someone who makes too much for the DPA program but not realistically enough to keep DTI low].

 

I am simply trying to offer a new perspective. I don't like blaming good borrowers caught in a [bank govt hell storm] and act as if the banks and even government are the good moral financial leaders. Everything affectsyour score. You make ONE mistake and a credit score will ALWAYS remind you for at least 7 years. The lenders don't care you made 5 years of on time payments, just care about your score is a 600 now because of ONE mistake which can lower your score by depending on the mistake up to 10-100points.

Established Member

Re: Fannie Mae, FHA, & VA Guidelines

Then are you blaming baby boomers and generation X who felt so entitled to buy a home that they brought the world financial economy to its knees in 2008(their actions has VASTLY restricted good people like myself who pay bills on time for years)? But God forbid they miss a $5 pmt and now its considered a HUGE derog on your FICO score[this mistake now says you're a risk]. But guess who has the long record of credit history and who can AGAIN buy another home after ONLY 4yrs wait of filing bankruptcy?  No one is saying entitled,but to simply make it fair and transparent. Ifyou are going to score someone,tell the EXACTLY how[which we are NOT told but many seem to just accept this as "the norm". Asking for fairness is not entitlement.

New Visitor

Re: FHA's discriminatory rule, Oct. 2015, student loan debt DTI at 2% monthly

I am in the same boat.  Great credit, but dont qualify.  I have student loans and I pay on time everytime but with these new FHA rules I am disqualified too.  What is going to happen when more and more people can't buy homes??  I mean why would a person with perfect credit, 2 degrees in science, make 52000, wants a home that is cheap and not spending 200,000 or even 1700000 on a home, and she pays on time everytime be disqualified from home ownership?  The more people I tell the less people want to even go to school.  What will happen when more people refuse education because they will be punished and be pretty much homeless??  This MUST change.  I honestly hope the whole system collapses.  The government tricks people into going to school, then they all of a sudden made it a punishment to get a home?? Please.  This is why more people are losing interest in government.  America you are the worst.  Honestly, I am ashamed of this country.  No wonder so many people feel the way they do.

Moderator

Re: FHA's discriminatory rule, Oct. 2015, student loan debt DTI at 2% monthly

This is sliding into politics for what is an old informational post.

 

Locking the thread.

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