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homestead - Re: [Homestead] Bush zero-down payment on houses

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  • From: Gene GeRue <genegerue AT ruralize.com>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Bush zero-down payment on houses
  • Date: Tue, 05 Oct 2004 11:48:51 -0700


An unanswered question remains, he acknowledged: "We have no experience of how these loans will perform when the market is weak."

Oh really? I wonder if he can take a wild guess.

Indeed. His answer is either an outright lie or he is incompetent. Even my imperfect memory clearly recalls when southern California had lots of over-financed places after the big defense budget cutbacks caused widespread layoffs and PhDs were pumping gas. Foreclosure rates under varying conditions are well established.

Very-high-percentage mortgage loans require very good credit scores, OR a government program to insure or guarantee them, in which case we taxpayers act as insurance underwriters. Non-government loans with less than 20 percent down payment require private mortgage insurance with the premium paid by the borrower. To beat that, it sometimes makes sense to use a 20 percent second, with attendant higher interest rate, to get the no-mortgage-insurance first loan. There are a gazillion mortgage plans, one to fit every purchaser. Rely on a good mortgage broker to help you make the decision of what is right for you. Know what you will do if you lose your income, with the knowledge that a foreclosure will probably wreck your credit score.






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