Freddie Mac Launches "3% Down" Mortgage With No Income Restrictions

[BitchI'llKillYa]

If you are black, I would stay as far as possible from mortgages. You need liquidity and the way they structure these products is not conducive to us.

Many times we are exposed to messaging that is applicable to whites and not us. You see an ad for Starbucks thinking you can sit around like everybody else. Than SWAT shows up and fires a couple of bullets

If you didn't learn the LESSON Bush taught, it' on you.

You buy these homes and hold forn2 years then SELL. Take advantage of the system and don' buy to live above your means.

I will say in SOME areas, like California, this is not a smart move because homes are still crazy high. But let this market work for you

JUST DON' BUT TO LIVE IN LONG TERM, DON'T BECOME EMOTIONALLY ATTACHED

 

[Pu$$yJunky]

I'll be happy to scoop up the leftovers after the fallout. I inadvertently bought a great investment in my first house at the end of 2009 when the market was shit and just sold it last year for a $60K profit before taxes/commission.

Nice.

 

[playahaitian]

In that case they should consult a Black learned Attorney and not rely on their loan officer. It only cost less than $500 fir document review and advice. I’m not trying to be smart but people pay $600 documentary fee fir their KIA but they hem and haw at paying $500 for legal advice.

I have no idea why that is...especially in the Black community.

We do NOT trust lawyers or value legal advice.

Is it just the overall bad reputations lawyers have?

I would think a life altering investment like a home would warrant some GOOD legal advice for $500 (even though honestly I didn't know that was an option myself)

 

[ViCiouS]

 

[blackbull1970]

The main issue is they are trying to sell these homes to millennials and kids coming out of college.

The problem is they are burdened down with school loan debt and unable to purchase their first home after graduation. Majority of them have to move back home with their parents.

This is causing a major FUBAR in the economy with millenials unable to get themselves financially setup like their parents and grandparents from the WW2 and Baby Boomer generations.

Instead of giving out “Free Homes” they cant afford, get rid of all this student loan debt these kids are burden down with, that way they can purchase a home the traditional way.

How the fuck they expect them to purchase a home and over half the monthly income is going to school loans?

And also one other thing, this is all being done for Young White adults, like stated early, Black folks beware.

If Black folks do get into this, after purchase make preparations to sell and flip that home as soon as you can and take the money and run.

 

[Naha-Nago]

You can't make this shit up...

We JUST got out of this.

*two cents*

 

[Mixd]

Is there ANY way for a middle class first time home buyer to take advantage of this at ALL WITHOUT getting caught up in a bad situation down the line?

bookmarked

Not about someone getting caught up. If you can afford it that's great to get into a home.

I'm talking about how they are luring any and anyone without proving an income. Many times you'll get anyone with no stability to go into a situation like that and eventually lead to losing their home and the bank having that on their books.

Overall, the bankers above the normal bank that you walk into, meaning those who lend in bulk like a Freddie Mac or those who buy in bulk, they know ahead what this does. They buy and sell mortgages in the thousands. They in part caused the last recession, because of lending to people who they knew couldn't pay it back. The bubble burst eventually which many financial analysts knew was imminent and we are at that door once again.

You see this also evident in auto loans as well. They now have crazy terms like 7 to 9 years to pay off a car loan I've seen. Yes that's great to some I suppose for lower payments, but you'll end up still having to pay for something that the average person isn't keeping that long or maybe the car won't even last that long.

 

[Hey Julian!]

In that case they should consult a Black learned Attorney and not rely on their loan officer. It only cost less than $500 fir document review and advice. I’m not trying to be smart but people pay $600 documentary fee fir their KIA but they hem and haw at paying $500 for legal advice.

Your agent and loan officer do not have your best interest in mind. You need a competent third party like an attorney or accountant.

But, let's be honest about those document fees, they are over inflated and most times snuck into the loan so the buyer doesn't have clue or enough sense to ask what they are there for if they do see on the paperwork.

 

[Mixd]

But, let's be honest about those document fees, they are over inflated and most times snuck into the loan so they buyer doesn't have clue or enough sense to ask what they are for if they do see on the paperwork.

You see everything on your closing statement. Yes the fees are messed up but it's a biz/hustle that some of these middle men provide.

Like the one day title insurance you pay. It's for your protection, but some times I look at it like what a scam.

 

[4 Dimensional]

Fuckin 30 year loans. Some people will go in thinking this will be a forever home. They will not keep it up and improve the equity, so will likely not be able to sell it for what they got it for.

Many people will not pay off their home and probably will never end up owning one.

The issues isn’t the loans as much as it is the overinflated housing prices. That’s the real issue.

 

[BitchI'llKillYa]

Fuckin 30 year loans. Some people will go in thinking this will be a forever home. They will not keep it up and improve the equity, so will likely not be able to sell it for what they got it for.

Many people will not pay off their home and probably will never end up owning one.

The issues isn’t the loans as much as it is the overinflated housing prices. That’s the real issue.

Use it to your advantage... I didn'
Get it at first... but my homie did, he walked away with a 300k profit, and I rode the wave til it crashed...

Now I know, and knowing is half the battle...

You see everything on your closing statement. Yes the fees are messed up but it's a biz/hustle that some of these middle men provide.

Like the one day title insurance you pay. It's for your protection, but some times I look at it like what a scam.

But all insurance is a scam... til it isn't.

Fuck around buying from an estate and long lost brother shows Up with his hand out.

 

[Hey Julian!]

You see everything on your closing statement. Yes the fees are messed up but it's a biz/hustle that some of these middle men provide.

Like the one day title insurance you pay. It's for your protection, but some times I look at it like what a scam.

Correction*. You're supposed to see the fees, but they have this new electronic document scheme that they pull, where you're not actually even seeing paperwork. You just signed an electronic pad and people are trusting that these scam artists are giving them a proper run down of what they are signing for. It's the same old story with stealerships, really, they are just going digital with it now.

 

[Mixd]

Correction*. You're supposed to see the fees, but they have this new electronic document scheme that they pull, where you're not actually even seeing paperwork. You just signed an electronic pad and people are trusting that these scam artists are giving them a proper run down of what they are signing for. It's the same old story with stealerships, really, they are just going digital with it now.

Never knew about it being digital, but not seeing your closing statement seems nuts to me. I'm not signing shit til I read everything. Sorry.

This ain't groceries at the check out line I'm signing to pay for. This is a house for 15-30 yrs of payments. Can't do it.

 

[Hey Julian!]

Never knew about it being digital, but not seeing your closing statement seems nuts to me. I'm not signing shit til I read everything. Sorry.

I feel you, but even seeing as people don't know what to argue in the first place. When they get their claws in you, it's like an art wearing down a buyer in the finance office. People are just ready to sign and get the fuck outta there.

 

[4 Dimensional]

Use it to your advantage... I didn'
Get it at first... but my homie did, he walked away with a 300k profit, and I rode the wave til it crashed...

Now I know, and knowing is half the battle...

And I’m sure a little luck factored into that as well.

See, I’m not exactly sure how things are going in Cali beside the crazy high housing prices.

Here in the south, they are building those cookie cutter neighborhoods are over the place. Most of those places take the first time home buyer loans, so people are moving in for the sake for just owning a house instead of investing in the house as well.

Those type of neighborhoods generally sucks. Very little lot space, so that means all the value of the house is coming from the house itself and the neighborhood. Most have HOA so that limits what you can do to improve the house. But they are coming up everywhere and people are paying crazy high prices for them and it’s not worth it. Cookie-cutter homes is like driving a new car off the lot once you purchases it. Value goes crazy down, especially when the ones that sold it know it was overpriced.

Middle class folks simply do not have the funds to actually have a house paid off even after 10 to 15 years on the loan. And flipping a house doesn’t always work if the neighborhood or general area doesn’t increase in value. That could be something that is out of the home buyers control.

 

[Mixd]

I feel, but even seeing it people don't know what to argue in he first place. When they get their claws in you, it's like a art wearing down a buyer in the finance office. People are just ready to sign and get the fuck outta there.

Yes but if your attorney is really working for you, they should catch BS if there is any. But many of those "fees" are considered "routine" and part of their normal hustle.

Which if you could get into some of that as a biz is good, but many times it's a quiet kept secret many don't know about.

 

[play030]

Where is Obama when you need him!!














Obama come back brotha!!!!

Are you fucking serious? Old COONS never learn.

 

[Dr. Truth]

This shit don’t work in California. The average home price is still above 1 million here. Trying to get in now is stupid. You still have a million dollar mortgage after you put your payment down, most can’t afford that.

 

[xxxbishopxxx]

Correction*. You're supposed to see the fees, but they have this new electronic document scheme that they pull, where you're not actually even seeing paperwork. You just signed an electronic pad and people are trusting that these scam artists are giving them a proper run down of what they are signing for. It's the same old story with stealerships, really, they are just going digital with it now.

I bought my house last year. Yes, were a lot of digital paperwork. I believe I had the option to print out paper copies if needed. Also on the day of signing, all the hard copy paperwork was in front of me. I had to sign those in front of everyone. Not saying it is always the case, but in mine, I had was able to verify all my paperwork.

 

[xxxbishopxxx]

In that case they should consult a Black learned Attorney and not rely on their loan officer. It only cost less than $500 fir document review and advice. I’m not trying to be smart but people pay $600 documentary fee fir their KIA but they hem and haw at paying $500 for legal advice.

Your agent and loan officer do not have your best interest in mind. You need a competent third party like an attorney or accountant.

You are completely right. But for me, I was like gotdamn, I don't need another fucking fee added to all these bullshit closing costs. Especially if there was no guarantee I could save some real money in the long run.

 

[blackbull1970]

Checked the mail Saturday night.

Box was full with over 10 envelopes for credit card preapprovals, car loan preapprovals, home loan preapprovals and refinancing. Offers from real estate agents to sell my home, equity loan preapprovals.

There will be more this week.

I was getting the same mail in large volumes prior to 2008.

 

[p5ych3]

People need to buy what they can afford. Know that if you work a 9-5 it's not guaranteed, so have 6mths to 1yr of mthly expenses put aside just in case.

Read the conditions of the contract it might require living in the home for some years. Careful with their PMI, some drop once u are at 20%, some don't and some are in between.

But the main thing is buy what you can afford and have funds stashed away.

 

[(0_0)..l.. finger]

Are you fucking serious? Old COONS never learn.

Read again

 

[Tha Great Muta]

A lot of good info in this thread.

 

[chitownsfinest]

I'll be happy to scoop up the leftovers after the fallout. I inadvertently bought a great investment in my first house at the end of 2009 when the market was shit and just sold it last year for a $60K profit before taxes/commission.

THIS! Folks need to make sure they aiiite during the inevitable downturn and then pick off other people's mistakes for pennies on the dollar.

Bought my house in '09 with the market was crashing 10% in a day. After 9 yrs, sold it for $115k more than I bought it for...and $150k in proceeds.

 

[black again]

Good thread, for sure... And as was stated earlier, if you don't know EXACTLY what that mortgage states, get some professional help!

With as much money to be made, there are some scrupulous and NOT so scrupulous people. In that business. So, CYA.

It's been a long time sine I've done any home loans, but back in the day.....
I saw some stuff like straight out of a movie..

 

[Mixd]

People need to buy what they can afford. Know that if you work a 9-5 it's not guaranteed, so have 6mths to 1yr of mthly expenses put aside just in case.

Read the conditions of the contract it might require living in the home for some years. Careful with their PMI, some drop once u are at 20%, some don't and some are in between.

But the main thing is buy what you can afford and have funds stashed away.

This is precisely the problem that happened in the past. People don't know what they can afford and these mortgage brokers in the past used to find every means of putting down an income for you.

In NYC for example, West Indians have a form a savings called SuSu Hand. You put money in weekly with a friend and it's 12 weeks usually or whatever. Brokers/bankers were allowing that as income. Even counting your kid turning 18 and saying they will have future income to put into the mortgage. Smh. Lying too saying you do business after work like Amway and make X dollars. People didn't care because all they saw was owning a house, thinking don't worry we will find a way to pay it. "Let's do it!"

I've seen madd shit cause I used to design/print madd stuff for 3 brokers that made a killing off Countrywide. They used to pay me so heavy and used to press me to put my name on a few mortgages and rent houses as rentals. I never did. But used to see the schemes they used to pull on many poor hard working people.

Many of those places died out a little prior to the recession. Banks saw it coming. The public stayed dumb founded when they saw the news. But I felt it a year prior with business for myself. When major companies I used to design and print for started slowing, I was like wtf is going on in 2007, then 2008 the "times" officially hit the markets. I used to freelance design and marketing for companies like Amex, Diageo and quite a few others. When they stop dealing with the little guy like me, was a major tell tale sign of things but I didn't know what was coming.

 

[The Plutonian]

Is there ANY way for a middle class first time home buyer to take advantage of this at ALL WITHOUT getting caught up in a bad situation down the line?

bookmarked

Research and if possible try the VA loan route. If they say variable interest rate, RUN! Also on a fixed mortgage not more than 5% , if you can pay down a percentage point at closing to maybe 3.5% do it, go in way the the notion to pay extra on principle at least every other month. You’ll pay off house in almost half time.

 

[Dannyblueyes]

The main issue is they are trying to sell these homes to millennials and kids coming out of college.

The problem is they are burdened down with school loan debt and unable to purchase their first home after graduation. Majority of them have to move back home with their parents.

This is causing a major FUBAR in the economy with millenials unable to get themselves financially setup like their parents and grandparents from the WW2 and Baby Boomer generations.

The biggest misconception in America is that the post-war years were normal.

They weren't!

The Nazis blew up all the European factories which gave America a huge competitive advantage and American workers insane bargaining power. You also had the GI bill which was the biggest redistribution of wealth in America's history. This is how most of our parents and grandparents were able to buy a house that cost less than a one-year salary.

The world has changed dramatically since then and those conditions are never coming back. So no, for the most part millenials will not be able to buy a home the same way that their parents did and anybody who tells them otherwise is trying to steal what little money they have left.

The second misconception is that everybody is supposed to live better than their parents did. That might make sense if you were the first one in your family to go to college. It might make sense if your parents were immigrants who came here with $100 and a suitcase. Beyond that America doesn't work that way anymore.

 

[jagu]

I have no idea why that is...especially in the Black community.

We do NOT trust lawyers or value legal advice.

Is it just the overall bad reputations lawyers have?

I would think a life altering investment like a home would warrant some GOOD legal advice for $500 (even though honestly I didn't know that was an option myself)

It's because people do not physically see what lawyers do until shit is fucked up.

For example, a young Black dudejust left my office. He had closed on a nice property near the Braves stadium on Thursday and the attorney called him back to give him his money back on Friday saying the seller doesn't feel like selling it anymore and he went and picked up the check. I asked him why he didn't call me first? He said he knew he was going to pay before talking to me. Now, it will be harder and more costly to correct his error but I can get it taken care of.

 

[Dannyblueyes]

People need to buy what they can afford. Know that if you work a 9-5 it's not guaranteed, so have 6mths to 1yr of mthly expenses put aside just in case.

Read the conditions of the contract it might require living in the home for some years. Careful with their PMI, some drop once u are at 20%, some don't and some are in between.

But the main thing is buy what you can afford and have funds stashed away.

I teach my daughters that there is only one of three occasions when you should get a loan.

1) you can pay it back within 30 days
2) it's going to make you money
3) it's going to save you money

Same thing applies when you buy a house.

 

[jagu]

But, let's be honest about those document fees, they are over inflated and most times snuck into the loan so the buyer doesn't have clue or enough sense to ask what they are there for if they do see on the paperwork.

Yes, but they see it and don't question it because they want that shiny car by all means. I always try to get it taken off but I don't always succeed.

 

[playahaitian]

It's because people do not physically see what lawyers do until shit is fucked up.

For example, a young Black dudejust left my office. He had closed on a nice property near the Braves stadium on Thursday and the attorney called him back to give him his money back on Friday saying the seller doesn't feel like selling it anymore and he went and picked up the check. I asked him why he didn't call me first? He said he knew he was going to pay before talking to me. Now, it will be harder and more costly to correct his error but I can get it taken care of.

I think THAT it is RIGHT THERE!

 

[MYSTIC]

How do we get paid from this? Since we all know it’s a trap. I want to be on the receiving end this time around. Someone with expertise please share instructions for a newbie.

 

[Africanama]

I tell you this: many of the younger folks picked up the book Rich Dad, Poor Dad and realize that Single Family home is not asset is but a major liability. Minnenials no longer want to be tied down to the “forever home” and want the flexibility to move around for Work and lifestyle opportunities. African Americans in some aspects should have that approach. People are better off buying multifamily properties if they want to own a home and let the tenants pay the mortgage.