1,466,257
Nathan Gesner Unison's shared equity program is nothing new. These programs have been around a long time. Not seeing many might be an indication, that buyers are not very interested. Loftium's approach sounds new, but do buyer's really want to rent a room out in their new home and give up the income to this company? FHA allows buyer's to purchase with a small downpayment. There is an MIP cost to getting the loan, but not much different than paying PMI for a conventional loan.
The so called alternatives, seem to substantilly profit these companies. Yes, the buyer can move in with little down, but is it really worth it.
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Mary Yonkers
Erie, PA
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Lyn Sims
Schaumburg, IL
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Candice A. Donofrio
Fort Mohave, AZ
1,056,663
Call me a stick-in-the-mud. But I think except for helping our veterans, folks shouldn't buy a home unless they can put in some equity in the beginning. As for the alternatives, those investors are taking a big risk.
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Nathan Gesner
Cody, WY
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Tammy Lankford,
Eatonton, GA
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Mary Yonkers
Erie, PA
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Lyn Sims
Schaumburg, IL
1,078,201
They make it seem like a down payment is a struggle - down payment is only a struggle for a)people who make no money, b)people who spend their money on dumb crap, and c)people that want their first home to be a perfect move-in ready bright shiny mcmansion
There are so many low or no down payment options it would make your head spin. People don't need any money to get a home. These programs offer less than stellar solutions where there isn't even a problem.
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Nathan Gesner
Cody, WY
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Tammy Lankford,
Eatonton, GA
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
1,847,051
Wow, it is amazing when ignorant people write posts & try to make them credibile.
These are the guys I was going to write about today. Loftium
Any home purchase when the buyer does not have 20% is therefore 'increased costs'. What a bonehead.
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Nathan Gesner
Cody, WY
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Tammy Lankford,
Eatonton, GA
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
544,014
It sounds like an incredibly high-risk second mortgage plan.
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Tony and Suzanne Marri...
Scottsdale, AZ
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Nathan Gesner
Cody, WY
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
5,240,031
There are several programs available for financing. Some work for many and some work for a few. Making the right choice requires a knowledgeable loan officer.
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
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Nina Hollander, Broker
Charlotte, NC
6,418,755
Things are always more expensive when the govt gets involved.
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Bob Crane
Stevens Point, WI
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
5,254,675
These companies are in business to make a profit - sadly, they are making their money off of these buyers who can't afford a down-payment or have credit that is in need of repair.
If it slithers like a fish and smells like one too...yep, it's fishy!
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Bob Crane
Stevens Point, WI
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John Pusa
Glendale, CA
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Candice A. Donofrio
Fort Mohave, AZ
2,684,669
This will open a legal can of worms. Deed restrictions. Lenders. Zoning problems and rental prohibitions.
To your question, does FHA increase the cost? Of course... it's called PMI.
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Nathan Gesner
Cody, WY
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
1,506,163
Maybe if they drank regular coffee instead of $7 a cup fair trade specialty coffee grown by a commune and transported to the store from ecuador by bicycle, they could afford a downpayment.
Seriously, it's all a matter of priorities. I worked with plenty of people who would spend $200+ a weekend on clubs and booze, have the latest phone and top fashion styles... and then bitch about not having money for rent.
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Nathan Gesner
Cody, WY
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Candice A. Donofrio
Fort Mohave, AZ
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Debe Maxwell, CRS
Charlotte, NC
1,153,794
FHA has its place although the life of loan MIP has curtailed my former support of its use. I'm always seeking alternatives for the best fit. Every need is unique and the idea that you can always refinance looms as a last resort.
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
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Kathleen Daniels, Prob...
San Jose, CA
3,416,038
FHA is the only way some buyers can buy, so an increased cost is worth it to them.
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Nathan Gesner
Cody, WY
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Kathleen Daniels, Prob...
San Jose, CA
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Nina Hollander, Broker
Charlotte, NC
3,167,714
I'm only sharing my equity with my husband who shares in the mortgage payments every month
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
3,988,013
Shared equity has never been a favorite of mine for my clients. In the end it is not in their best interests.
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
3,986,308
I have yet seen an FHA loan cheaper thatn a conventional one.
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
4,177,308
Nathan Gesner An interesting concept.
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
5,583,328
I'm thankful I don't need to focus on that....
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
3,349,554
FHA loans do increase the cost of buying a home ... that PMI is outrageous! That is the price one pays for not having more money down. I am not a fan of the alternative. It may work for some ....
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
1,241,879
After 12 years accepted a FHA loan it was taking way too long. I am in the position not to mess with FHA or VA.
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
1,712,776
I like the answer from Ken Jones. That about covers it.
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
1,231,853
Let's ask a mortgage broker here at ActiveRain.
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Debe Maxwell, CRS
Charlotte, NC
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Michael Jacobs
Pasadena, CA
5,113,121
This is way above my pay grade... can't say I've ever really looked at relative costs. And I leave it up to my clients to discuss with their lenders the most cost-effective financing instruments they qualify for.
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Nathan Gesner
Cody, WY
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Kathleen Daniels, Prob...
San Jose, CA
7,864,157
Thanks for sharing this link.
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Nathan Gesner
Cody, WY
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Debe Maxwell, CRS
Charlotte, NC
4,319,773
Nathan Gesner - excellent answer from Ken Jones, ASA, SCGREA.
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Nathan Gesner
Cody, WY
5,772,587
4,961,536
1,728,256
The desperate will seek alternatives and often not the correct ones. FHA would be my choice if in this situation.
4,434,177
4,800,132
3,071,489