Housing market
- Thread starter simply1
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Yeah that’s a great product if you don’t want to put anything down and are buying a house in a smallish town. you can literally come to the table with zero down Payment, and in some cases the buyer will actually get a check.
There are lots of these kinds of analysis, but they fail to account for the fact that the "average" price of milk in, say, NYC includes things like raw kosher alligator milk for $27/gal. That drives up the average in NYC when it's not even available in Iowa. There was a study done on the UPC level (barcode for a specific item) and found that identical items were typically the same or slightly less expensive in bigger cities. All about economies of scale and efficiencies in logistics. It's easier to deliver 1,000,000 gallons of milk to NYC than it is 10 gallons of that same milk to a little town of 5000 people.
The majority of cost of living differences is in housing. There's also some difference in taxes but that's really it. IMHO.
I've been keeping my eye on job openings in El Paso. You can buy a 3br Spanish style with a pool for under 200k there while that same home would be 450k in greater PHX.
You can do that in Mason city and fort dodge also. Too far away to deal with it in larger towns but think it is alive and well there.
Actually both Mason city and Fort Dodge are not eligible. Needs to be a smaller town. You can plug in the address on this website to search eligible properties: https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=sfp
you can also zoom into the map to see the shaded areas that are not eligible.
Well, I appraised houses for those loans going in place so I don’t need to look at a map.
What don't they control? Control Fannie/Freddie. They can bail anything out or flood the market with money. As we have seen, rates can be controlled. We have seen them provide incentives to buy homes in the past or create opportunity zones. Property taxes can be controlled. They control a sizeable portion of the housing market.
That doesn’t really mean anything. The lender could’ve been clueless and failed to check the address elibility, or maybe the addresses of the houses you appraised are not directly in the city limits of those two cities.
Nope, nope and nope. Part of the process at times is walk throughs after everything to make sure all code stuff is legit, lender would be waiting on this as the final step to release funds.
Maybe you are looking at one specific program of theirs, they have several. I didn’t look at your map, so not sure exactly which ones you were covering.
The program is the single family guaranteed housing USDA Rural Development 100% financing mortgage loan. To be eligible for that product the property cannot be located in an ineligible area. No exceptions.
The OP said the govt won't let another bubble happen. I responded that the govt isn't in control. There is a bubble coming and the govt is not going to be able to stop it. All of your above is true, but I was talking about the bubble. That bubble isn't going to be stopped
Okay so one program there. Look at the ones that only require 3-5% down, those are the most common (100% is something we only saw a couple times). Over half our business, so about 5-6/week are USDA or FHA (six one/half a dozen the other) loans that we are doing appraisals for.
Correct FHA loans can be financed anywhere. But the USDA loans are specifically to help borrowers buy a home in rural communities. I’m pretty sure the appraisal for the USDA loans are very similar to the FHA appraisal.
Blackrock - it’s kind of disgusting really. They want to make “housing affordable”. What they really want to be is the largest landlord in the US
Fed, Congress and Housing complex are all sustained on home prices rising. Why wouldn't you get into an investment with the government doing that much pushing on the scale??
We bought our house in the western suburbs of DSM, summer of 2017 for $304,500. Last summer I got an all cash offer for $390,00. The most significant addition/improvement added was a $4K chain fence.... I would have taken it but homes we liked in the mid to high $400K range are now $575-$600K..
Fed Funds rate is 0% and inflation is running at 7%. Look at how scared the stock market is lately with the likelihood of rising interest rates. This whole system is a house of cards built on 3% 30 year mortgages
I'm currently renting from First Key Homes. (horribly run, don't use them) There's a city in a metro area where they bought so many properties the city told them they wouldn't allow them to buy any more of them. I can't remember which one it was, the maintenance guy told me. Rental prices had gotten so high people were moving to different parts of the city.