Comments on: More on DPA’s http://straighttalkaboutmortgages.com/2008/07/31/more-on-dpas/ A Place for Some Real Answers About Mortgage Loans Wed, 10 Mar 2010 22:56:00 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Tom Vanderwell http://straighttalkaboutmortgages.com/2008/07/31/more-on-dpas/comment-page-1/#comment-138 Tom Vanderwell Sun, 03 Aug 2008 12:41:53 +0000 http://straighttalkaboutmortgages.wordpress.com/?p=1078#comment-138 Hunter, I think we'll have to agree to disagree on that one. To me, saying that every loan program has it's place is ignoring the fraudulent nature of the DPA's where you are saying that they are getting a gift from an organization but it just so happens that the seller is making the same size gift to the organization. That's essentially fraud in my book. I'm all for the organizations that truly give grants to encourage home ownership. One of my client's kids got a $5000 grant from the city because they were buying an owner occupied duplex in a certain area. That's a great way to encourage people to buy homes in certain areas. There's a difference between that and what the dpa's are doing. Sorry this took so long to get on here - I have no idea why, but my spam filter didn't like you. :-( Tom Hunter,

I think we’ll have to agree to disagree on that one. To me, saying that every loan program has it’s place is ignoring the fraudulent nature of the DPA’s where you are saying that they are getting a gift from an organization but it just so happens that the seller is making the same size gift to the organization. That’s essentially fraud in my book.

I’m all for the organizations that truly give grants to encourage home ownership. One of my client’s kids got a $5000 grant from the city because they were buying an owner occupied duplex in a certain area. That’s a great way to encourage people to buy homes in certain areas. There’s a difference between that and what the dpa’s are doing.

Sorry this took so long to get on here – I have no idea why, but my spam filter didn’t like you. :-(

Tom

]]> By: Mortgage Market Week in Review | BloodhoundBlog: National real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments http://straighttalkaboutmortgages.com/2008/07/31/more-on-dpas/comment-page-1/#comment-137 Mortgage Market Week in Review | BloodhoundBlog: National real estate marketing and technology blog | Realtors and real estate, mortgages, lending, investments Sat, 02 Aug 2008 01:40:31 +0000 http://straighttalkaboutmortgages.wordpress.com/?p=1078#comment-137 [...] that are bringing astoundingly higher default rates on FHA loans are being eliminated. Click here to read some more of my thoughts on those. 4. The capital gains tax rules have changed based on how [...] [...] that are bringing astoundingly higher default rates on FHA loans are being eliminated. Click here to read some more of my thoughts on those. 4. The capital gains tax rules have changed based on how [...]

]]> By: Tom Vanderwell http://straighttalkaboutmortgages.com/2008/07/31/more-on-dpas/comment-page-1/#comment-136 Tom Vanderwell Fri, 01 Aug 2008 23:41:32 +0000 http://straighttalkaboutmortgages.wordpress.com/?p=1078#comment-136 I think that we can do a lot of "discussing" about different "options" but the reality of things is pretty much like this: Loans with seller paid downpayments default at a significantly higher rate than those with "skin" in the game. Calling it a "grant" when it is really a contribution from the seller is a scam. Tom I think that we can do a lot of “discussing” about different “options” but the reality of things is pretty much like this:
Loans with seller paid downpayments default at a significantly higher rate than those with “skin” in the game.

Calling it a “grant” when it is really a contribution from the seller is a scam.

Tom

]]> By: Mike Sweeney http://straighttalkaboutmortgages.com/2008/07/31/more-on-dpas/comment-page-1/#comment-135 Mike Sweeney Fri, 01 Aug 2008 21:36:10 +0000 http://straighttalkaboutmortgages.wordpress.com/?p=1078#comment-135 I've heard it called "FHA money laundering" before. In a way that's true. The buyer is paying for it in the price of the home, either way. Then the funds just get passed through an entity that charges a fee. If that's ok to do, why not allow the seller to pay for the dp directly and save the fee? Or allow 100% ltv? Same difference. Just a thought. I’ve heard it called “FHA money laundering” before. In a way that’s true. The buyer is paying for it in the price of the home, either way. Then the funds just get passed through an entity that charges a fee. If that’s ok to do, why not allow the seller to pay for the dp directly and save the fee? Or allow 100% ltv? Same difference. Just a thought.

]]> By: Hunter Jackson http://straighttalkaboutmortgages.com/2008/07/31/more-on-dpas/comment-page-1/#comment-134 Hunter Jackson Fri, 01 Aug 2008 14:27:19 +0000 http://straighttalkaboutmortgages.wordpress.com/?p=1078#comment-134 Tom, I believe that a DPA program has its place. Though it should not be used for everyone, it is important to remember each loan product, even ARM's, Neg Am etc has its place, just people tend to abuse them. Tom,
I believe that a DPA program has its place. Though it should not be used for everyone, it is important to remember each loan product, even ARM’s, Neg Am etc has its place, just people tend to abuse them.

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