1,311,397
My first thought is that FHA is trying to limit its risk somewhat. If the borrower who wants to refi to get cash out cannot qualify elsewhere due to a lower credit score, FHA might not want to loan them even more money than currently is owed.
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Carol Williams
Wenatchee, WA
-
Olga Simoncelli
New Fairfield, CT
-
Nina Hollander, Broker
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Bob "RealMan" Timm
Minot, ND
1,598,452
For sure agree with all answers and Barbara Todaro
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Valeria Mola
Sunny Isles Beach, FL
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Michael Jacobs
Pasadena, CA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Bob "RealMan" Timm
Minot, ND
1,502,998
I heard about that. I think it's a good precaution. Maybe they're seeing a potential problem that they're trying to head off?
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
2,071,025
Great information!
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Valeria Mola
Sunny Isles Beach, FL
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
679,404
Here we go again ... interesting answers. IMHO I believe HUD is protecting their backside and there are those who would want people to panic or feel restricted. I believe we will be okay. If a buyer has decent credit I recommend they stay away from FHA and go with the 3% down Conventional product. Better all around.
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Lyn Sims
Schaumburg, IL
-
Nina Hollander, Broker
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
2,390,620
I can happly say that I own my house outright so no worries there and with me being out of the RE business no worries there either Caroline Gerardo . HOWEVER my mobile notary business may be affected BUT again I think the whole thing is a political scare by those who hate (and yes it's evil HATE) our President.
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Richard Weeks
Dallas, TX
-
Nina Hollander, Broker
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Diana Dahlberg
Pleasant Prairie, WI
3,587,960
Hmm very interesting Caroline, I didn't hear this yet, thank you. It does leave some FHA borrowers out in the cold.
-
Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Nina Hollander, Broker
Charlotte, NC
-
Michael Jacobs
Pasadena, CA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Bob "RealMan" Timm
Minot, ND
4,572,183
Hmm...a method to their madness or simply just madness. Rhetorical, of course.
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Richard Weeks
Dallas, TX
-
Nina Hollander, Broker
Charlotte, NC
-
Diana Dahlberg
Pleasant Prairie, WI
-
Bob "RealMan" Timm
Minot, ND
5,583,278
that's going to put a crimp in the plans of many homeowners....
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Nina Hollander, Broker
Charlotte, NC
-
Diana Dahlberg
Pleasant Prairie, WI
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
900,128
I think it's an attempt to reduce risk. Don't know enough to say if it makes sense.
-
Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Lyn Sims
Schaumburg, IL
5,104,931
Can't say I've given this much thought. No doubt it will put restraints on some borrowers... then again, if this really does avoid foreclosures when the market turns, it may be a good thing.
-
Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
-
Richard Weeks
Dallas, TX
5,772,575
Carolyn,
Government madness once again...A
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Michael Jacobs
Pasadena, CA
-
Diana Dahlberg
Pleasant Prairie, WI
-
Bob "RealMan" Timm
Minot, ND
3,416,038
A home should not be an ATM to buy other things with yor equity. Working foreclosures, many of the foreclosures last time around were on cash out refinaces.
-
Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
921,504
As we all experienced, cash out was a common practice in the hay-days of 2005. I'm more likely to believe HUD takes over 10 years to address a problem.
I don't think they are sufficiently agile to take measures for the promised recession of 2021.
Unfortunately, it is always those most fragile who are harmed in all such 'protective' actions. Why? They live a more reactionary life and really long term planning is not their 1st language. The often need the equity in their home to bridge the seasons of turbulence often encountered. HUD intends to impose FORCED wealth building by prohibiting cash out. One could build a good argument that wealth building changes the trajectory of ones future.
-
Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
2,178,603
It does seem to have merit, considering we're talking about borrowers with low FICO scores which puts them in the higher risk category. What's to stop them from pulling maximum cash out and then stop making payments?
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
1,844,301
I thought it was proven last go around that FHA borrowers are not the low life's they are thought to be? I think the determination is the FICO score.
Life says you get a score on how you treat or use money. I do say that you shouldn't be able to tell people what to do with their 'money' aka equity. Given past experience, they'll blow it like they are at the crap table.
-
Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
4,882,355
Didn't know, thanks for the heads up.
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
5,216,409
Had not heard. Good to know. Thanks!
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
6,393,609
Interesting question and answers here, I seldom deal with FHA and would rather that most housing matters were in the private sector and the govt should limit all of their activities.
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
634,531
HUD continues to shoot themselves in the foot. One of the few advantages they still had over Fannie/Freddie is now going away.
-
Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
-
Michael Jacobs
Pasadena, CA
225,526
I think this is a great rule change. It protects the consumer from over spending. People use FHA because of low FICO scores, so they are generally more risky. FHA is not doing this because of a recession, but instead, limiting their risk exposure. Why would anyone do an 85% LTV over a 80% LTV, just to get an extra $5-10K out of their equity. It is cost prohibitive
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
1,239,901
Americans are obseesed with refin, cash out go on a vacation to pay off more debts.
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Doug Dawes
Topsfield, MA
-
Dan & Laurie Pittsenba...
Bellingham, WA
-
Bob "RealMan" Timm
Minot, ND
469,510
I'm OK with it.
There are other ways for those with a low credit score to get cash out of their home (if there is any equity) to pay down debt or handle other problems. Folks can look into shared equity agreements - no loan, no hit on credit, no payments. If they use the money to pay down debt - they should be able to raise the credit score enough to qualify for conventional financing - then do a refi to buy out the equity agreement and get the lower interest rate.
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Doug Dawes
Topsfield, MA
-
Bob "RealMan" Timm
Minot, ND
1,196,798
It has always been my belief that the only cash outs allowed should be for home/property improvements...no consumer credit items
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Doug Dawes
Topsfield, MA
427,257
I'm not a big fan of cash-out refis, never have been. So I am in favor of protecting funds and the market.
-
Doug Dawes
Topsfield, MA
5,868,554
I can see this, and it would be better if homeowners would stop looking at their home as a bank. Everyone would have more equity.
3,345,091
7,836,164