@Daniel-xb4yb I feel like this would just make prices go up because more people will try and buy which lowers the inventory. Less supply then more demand
Exactly. You should have to earn OVER a certain amount (let's say $100k a year) THEN you qualify.... this way responsible adults who should be able to buy a house finally can.
BIG difference between 2006 and now. First off 2006 offered no income no asset 100% financing. Now you must qualify full doc with a DTI limit. Second there have been zero down programs over the past 16 years like VA, USDA and plenty of DPA programs offered by a plethora of lenders. Just think, VA offers zero down and add a 2.3 funding fee on top of that putting the veteran under water from the get go. You not talking about that though? 2006 also had appraisers bought and paid for. Not like that now. Let's not look past the prices of homes being to high for most zero down programs to work anyways.
This is going to cause prices to go up. If more people buy houses the inventory will go down, triggering the prices to rise. How did UWM get the authority to even offer a program like this?
Agreed. I am sick of the "no inventory" narrative. I've been watching building for years and can confirm there is zero correlation between building more and prices going down:-). Sellers will ALWAYS try to price the house at the same price as the maximum sale price in the vicinity. Also sick of "prices can't drop because no inventory" narrative. OK but there was no real shortage here; I am from NY and the population had been the same but prices skyrocketed. And loads of huge homes with 1-3 people living in them. That's not a shortage of housing
I'm just speaking for South FL but we have about 50% of the inventory we did before the pandemic. I believe that's a big reason why the prices are still so high... but coming down by the month thankfully
It's coming. 08-09 stage is being set. Be patient and save up all the $ you can. These lenders are hurting for cash, and are showing their hand big time
hey people: higher interest rates = lower home prices. look at history. lower inerest rates during 2021-2022 = higher home prices. its in history... just look
That's why they haven't cut interest rates yet this year even though they said they would already. It would screw up the housing market beyond repair. Not even sure we can recover as it is unless they keep rates high for the next 2 years
I've saved $120K to buy a house but can't afford anything. It's scary this is going on but out of touch to assume the issue is the downpayment and not overall costs like taxes, repair, and monthly payment. It's actually easier to save, I could choose when I was going on the ramen diet, decide when I was going to alter my 401k contribution, take mild risks investing the money sometimes, etc. Can't apply that logic to monthly payments.
If you are getting into a bidding war to get into a 8% overpriced home loan you are a fool! 😂 You would be lucky to be a lifelong slave and not end up bankrupt with bad credit.
Believe it or not it's still happening. It's rare and usually you can get a discount on a house now but if the listing agent is smart they underprice the house by a lot and then you end up getting a bidding war
@@AndyColeman politicians net worth goes up as property values go up. They're out for personal gain, while the normal Floridian/American suffer from housing affordability costs going up. But you're right, this should be illegal.
Great point! That's why they destroyed Californias housing market... so the politicians and their associates can come in and buy all the properties at low prices then take away all the terrible laws they enacted so people move back to Cali.
@@AndyColeman it was because of the shitheads suing banks for not giving them loans! then when the banks loaned to them, they screamed that the banks took advantage of them so the banks forgave the loans
This should be ILLEGAL. How on earth did UWM get the authority to create a program like this? Where is the government?
Government should stay out of it
Do you think it's responsible giving mortgages to individuals who don't have the money for a small down payment?
@AndyColeman not responsible i agree but one way or another prices have to come down this one of those ways
@Daniel-xb4yb I feel like this would just make prices go up because more people will try and buy which lowers the inventory. Less supply then more demand
@AndyColeman thats true does make sense its almost like any way we go at it just makes it more unaffordable
So the only people that 'qualify' for this program are exactly the people that shouldn't qualify for a program. Holy smokes!
Exactly. You should have to earn OVER a certain amount (let's say $100k a year) THEN you qualify.... this way responsible adults who should be able to buy a house finally can.
BIG difference between 2006 and now. First off 2006 offered no income no asset 100% financing. Now you must qualify full doc with a DTI limit.
Second there have been zero down programs over the past 16 years like VA, USDA and plenty of DPA programs offered by a plethora of lenders. Just think, VA offers zero down and add a 2.3 funding fee on top of that putting the veteran under water from the get go. You not talking about that though?
2006 also had appraisers bought and paid for. Not like that now. Let's not look past the prices of homes being to high for most zero down programs to work anyways.
I spoke about NINJA loans. You are correct though it's a different situation then back in 06.
Good Lord this isn’t what we need, we need lower prices.
This is going to cause prices to go up. If more people buy houses the inventory will go down, triggering the prices to rise. How did UWM get the authority to even offer a program like this?
Agreed. I am sick of the "no inventory" narrative. I've been watching building for years and can confirm there is zero correlation between building more and prices going down:-). Sellers will ALWAYS try to price the house at the same price as the maximum sale price in the vicinity.
Also sick of "prices can't drop because no inventory" narrative. OK but there was no real shortage here; I am from NY and the population had been the same but prices skyrocketed. And loads of huge homes with 1-3 people living in them. That's not a shortage of housing
I'm just speaking for South FL but we have about 50% of the inventory we did before the pandemic. I believe that's a big reason why the prices are still so high... but coming down by the month thankfully
It's coming. 08-09 stage is being set. Be patient and save up all the $ you can.
These lenders are hurting for cash, and are showing their hand big time
hey people: higher interest rates = lower home prices. look at history. lower inerest rates during 2021-2022 = higher home prices. its in history... just look
That's why they haven't cut interest rates yet this year even though they said they would already. It would screw up the housing market beyond repair. Not even sure we can recover as it is unless they keep rates high for the next 2 years
lol bruh they want you to roll your down payment into a HELOC? wtf
Right!? I'm Just happy UWM is the only one doing this now but if more Mortgage brokerages start doing this to compete it could be a real issue.
This is great news!
Why is this good?
I've saved $120K to buy a house but can't afford anything. It's scary this is going on but out of touch to assume the issue is the downpayment and not overall costs like taxes, repair, and monthly payment. It's actually easier to save, I could choose when I was going on the ramen diet, decide when I was going to alter my 401k contribution, take mild risks investing the money sometimes, etc. Can't apply that logic to monthly payments.
What area are you in?? You should be able to buy with $120k saved!
or not.
Maybe not, but I'm sure you can agree this isn't a good thing...
Hay mind you're tune 😮 I only make 13000 a year . We can't all be at the top
I meant no offense! I'm curious how do you afford rent and everything though? Cost of living is so high these days...
@@AndyColeman housing assistance and working every day I can.
If you are getting into a bidding war to get into a 8% overpriced home loan you are a fool! 😂 You would be lucky to be a lifelong slave and not end up bankrupt with bad credit.
Believe it or not it's still happening. It's rare and usually you can get a discount on a house now but if the listing agent is smart they underprice the house by a lot and then you end up getting a bidding war
Haha! What could possibly go wrong? 🙃
I'm baffled how the government even allowed this to happen. You would think they would have banned this exact thing??
@@AndyColeman it makes them richer too.
Because they will take the house back after the person defaults?
@@AndyColeman politicians net worth goes up as property values go up. They're out for personal gain, while the normal Floridian/American suffer from housing affordability costs going up. But you're right, this should be illegal.
Great point! That's why they destroyed Californias housing market... so the politicians and their associates can come in and buy all the properties at low prices then take away all the terrible laws they enacted so people move back to Cali.
thats only 1 no name lender
But what if other lenders start doing this?
@@AndyColeman what if the sky falls tomorrow??? clickbait!!
This is how it started in 2008... one company did it then more started
@@AndyColeman it was because of the shitheads suing banks for not giving them loans! then when the banks loaned to them, they screamed that the banks took advantage of them so the banks forgave the loans
@@AndyColeman that was the period of interest only loans