Seems like seller assisted down payment would be a good thing IF we restricted the DTI guidelines for these programs to assure the buyers can afford the house payment. Regular FHA buyers can go up to 55% DTI right now with DU approval. If we limited it to 43%, borrowers will not be in over their head and should be able to even save monthly.
Last time I checked having 96.5% LTV on a home after making a 3.5% down payment never helped anyone avoid default....how about you?
Thinking that someone who has 3.5% down payment will avoid default is a joke. I would rather see 100% financing with reserves in their bank than 96.5% LTV with no reserves and no way to access that other 3.5% equity for emergnecies. A better solution would be to require someone receiving seller assisted DPA to have 2-3 months PITI reserves to help make the payment in case of a job layoff etc..
View next topic View previous topic
You cannot post new topics in this forum You cannot reply to topics in this forum You cannot edit your posts in this forum You cannot delete your posts in this forum You cannot vote in polls in this forum
