US taxpayers have to bear few trillions more debts

lionnoisy SG

even 3 % down is too high!

http://www.hud.gov/news/release.cfm?content=pr06-088.cfm

The Expanding American Homeownership Act will:

1) Eliminate the current statutory three percent minimum down payment, reducing a significant barrier to homeownership. FHA’s existing down payment requirement does not meet the demands of today’s marketplace, where most first-time homebuyers put down two percent or less. The "new” FHA would offer a variety of down payment options.

3) Increase and simplify FHA’s loan limits. FHA’s loan limit in high-cost areas would rise from 87 to 100 percent of the GSE conforming loan limit and in lower-cost areas from 48 to 65 percent of the conforming loan limit. This change is crucial in today’s housing market

jojobeach SG

Tsk tsk..

Lionverynoisy.... you make so much noise only show how little knowledge you have about the overseas market.

Get out of that tiny cage and go see what else is out there.

You are really making a mountain out of a mole hill.

Yes, the US market is currently correcting - post subprime. That is a good thing.

The only people that are affected are the ones who bought houses during the subprime bubble, and those who took up subprime borrowings.

You are comparing a small sampan(sg) vs a big cruise ship (USA).

lionnoisy SG

Tsk tsk..

Lionverynoisy.... you make so much noise only show how little knowledge you have about the overseas market.

Get out of that tiny cage and go see what else is out there.

You are really making a mountain out of a mole hill.

Yes, the US market is currently correcting - post subprime. That is a good thing.

The only people that are affected are the ones who bought houses during the subprime bubble, and those who took up subprime borrowings.

You are comparing a small sampan(sg) vs a big cruise ship (USA).

WHAT IS SUBPRIME

What is defintion of sub prime loan--by income of the borrowers?,

or their income vs long term instalement ration(not teaser rate pl)?

or loan to value ratio?

RE FINANCE PARTY IS OVER

A general feature is many pple just refinance their house

in the past 20 years to pay off their debts(credit card,

car loan etc)and repay by mortgage.

But with the property started to drop from 3Q 2006,the party is going

to stand down....

Figure 2: Monthly House Price Index for Seasonally‐Adjusted Index, January 1991

to May 2008

http://www.ofheo.gov/media/hpi/MonthlyHPI72208F.pdf

http://www.ofheo.gov/hpi.aspx?Nav=335

lionnoisy SG

Remember Fannie Mae's is using $1 to bear $65 debt

They sell the debts AND gurantee the principal of debt

and interest for the term of the mortgage !!

In the falling property market,it is very difficult to sell !!

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