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20 Year Old Buys Home With $183,000 FHA Loan And Just 3.5% Down
Business Insider ^

Posted on 10/25/2009 10:51:43 AM PDT by newbie2008

Denise Tejada bought a house last month at the age of 20, thanks in large part to a loan guaranteed by the Federal Housing Authority. This story offers a dramatic demonstration that, despite the housing bubble causing the worst economic downturn in generations, the ideology of home ownership is alive and well in the United States and still being supported by the government. Without question, Tejada's loan is toxic--to her and to the taxpayers who are backing the loan. Her house cost $155,000. Tejada's loan was apparently made on a micro-down payment of just 3.5%, the minimum down payment to qualify for an FHA loan. On top of this, however, she got an additional government backed loan to make improvements. Her total loans amount to $183,0000. In short, she was immediately underwater on her new house.

(Excerpt) Read more at businessinsider.com ...


TOPICS: News/Current Events
KEYWORDS: 8000dollartheft; firsttimehomebuyer; fraud; irs; robthetreasury; taxcredit; taxfraud; theft; youpaidforthis
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1 posted on 10/25/2009 10:51:43 AM PDT by newbie2008
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To: newbie2008

And who would do this and why?


2 posted on 10/25/2009 10:55:13 AM PDT by Tarpon (To destroy the people's liberties, you poison their morals ...)
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To: newbie2008

Housing bubble 2.0 is well on its way


3 posted on 10/25/2009 10:55:32 AM PDT by newbie2008 (http://www.google.com/reader/shared/11513180806521029900)
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To: newbie2008

She’s so guilty I feel like throwing up.


4 posted on 10/25/2009 10:55:54 AM PDT by wastedyears (Clyde Shelton is my hero.)
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To: newbie2008

It’s called ‘reparations.’


5 posted on 10/25/2009 10:56:38 AM PDT by devane617
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To: newbie2008
In short, she was immediately underwater on her new house.

Well then, the flood insurance she bought from the government ought to make it all right.

6 posted on 10/25/2009 10:58:12 AM PDT by Slyfox
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To: newbie2008

Federal funding of ACORN resumes in 6 days —the suspension was TEMPORARY.


7 posted on 10/25/2009 10:58:59 AM PDT by gaijin
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To: newbie2008

I have no problem with micro-down payments, mini-interest rates, etc. Here’s the problem with the lender...

“The monthly payments on her debt amount to $1328. Her income is $2470, leaving her with just $285 a week to live on.”

That should be the only consideration when granting a loan. Can the recipient afford to make the payments?


8 posted on 10/25/2009 11:00:59 AM PDT by Leonard210 (Tagline? We don't need no stinkin' tagline.)
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To: newbie2008

With the economy tanking like it is the Oakland,Ca. area might just resemble her native Guatemala in short order.
Wish her well but the reality is that she is a financial idiot but not to any degree beyond the morons of the Govt. who created the housing bubble downfall mess in the first place. She is slave to her house as well....welcome to her American dream?


9 posted on 10/25/2009 11:01:31 AM PDT by tflabo
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To: newbie2008

Projectile vomiting guilty. I need to lie down.


10 posted on 10/25/2009 11:02:55 AM PDT by SkyShot (Jesus is coming. Look busy!)
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To: newbie2008

All I need is a refi, and I can’t get that unless I am near bankruptcy... meanwhile bums and thieves make out like a presidential intern toking on a Cohiba.


11 posted on 10/25/2009 11:04:13 AM PDT by Porterville ( I have come here to chew bubble gum and kick ass, and I'm all out of bubble gum)
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To: Tarpon

“”And who would do this and why?””

I’m sure it happened so she could claim the $8000 first time homebuyer credit. Reports out this last week found 90,000 ineligible and suspicious claims of tax credits totaling over $600,000,000 under that program. There was even a 4 year old who was approved for that credit.

See FR “Over $600 Million Of Credit For First-Time Home Buyers are Suspicious.”

Everyone who ever approved loan papers like this should go to jail.....EVERYONE! No charges, no trial, just straight to jail. Loan approval is evidence enough. People are fed up with the door being opened like this from DC and those who are told they “are entitled” will jump on the wagon every time.


12 posted on 10/25/2009 11:05:01 AM PDT by Thank You Rush
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To: newbie2008

The link has a video and here’s what you’ll learn from the two (El Salvadoran) kids who speak there:

Their dad “immigrated” from El Salvador and bought the family a home in less than 2 years. Both of the kids recently bought homes here in the US —the location is not disclosed. The girl is 20 years old, and the boy looks about...25 years old.

Their dad advised them not to buy useless things, and instead to buy a home.


13 posted on 10/25/2009 11:06:05 AM PDT by gaijin
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To: newbie2008
Housing bubble 2.0 is well on its way.

Yep. BTW..This loan (FHA) is guaranteed by Uncle Sam. Ginnie Mae bonds are paying 4.5 to 5% right now..not a bad investment.

14 posted on 10/25/2009 11:07:28 AM PDT by ExtremeUnction
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To: Porterville

The essence of liberalism - rewad bad decisions and punish prudent behavior.


15 posted on 10/25/2009 11:08:02 AM PDT by MrB (The only difference between a humanist and a Satanist is that the latter knows who he's working for.)
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To: Thank You Rush

And what about the responsibilities of the buyers? You surrender your responsibilities you forfeit your rights.


16 posted on 10/25/2009 11:08:05 AM PDT by Tarpon (To destroy the people's liberties, you poison their morals ...)
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To: gaijin

The other day on KSFO radio in San Francisco, they had conservative author guest, and he related the case of an illegal alien berry picker whose annual income was $16,500 and bought as house priced at $750,000.

This was about one year ago.

So that would make for a person who devoted EVERY dollar of income to paying off the house (without interest) for fifty years.

FIFTY YEARS.


17 posted on 10/25/2009 11:09:27 AM PDT by gaijin
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To: newbie2008
The article states, Tejada, a first generation immigrant from Guatemala,

But on the vid she mentions they are from El Salvador... errr...which one is it---not that there is a vast difference mind you but correct facts do matter.

18 posted on 10/25/2009 11:11:35 AM PDT by tflabo
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To: Leonard210

She can if she has six kids from six different daddies all paying child support, and taxpayers paying WIC subsidies, and half of her kids classified with some kind of “disability” like ADD or high functioning autistic or some such BS.

Also, if she gets her unemployed sister qualified as a government daycare provider, her unemployed sister can get a government check for babysitting her kids in her new house. And then her unemployed sister can pay rent to live in her new house.

Then both her and her unemployed sister can get night jobs as strippers and make lots of cash off the books...plus even more cash off the books if they bring some of their favorite customers home once in awhile.

She should have more money than she knows what to do with.


19 posted on 10/25/2009 11:13:18 AM PDT by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: ExtremeUnction

Ginnie Mae? I am going to start using that. LOL


20 posted on 10/25/2009 11:13:50 AM PDT by Vendome (Don't take life so seriously... You'll never live through it.)
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To: newbie2008
“She's paying 54% of her income to make the mortgage payments. She earns that income by holding down one full time and two part time jobs”

FHA’s DTI ratios are well below that; and part time income can not be counted for income unless there is a solid 2 year history.

Most 20 year olds are not ready for home ownership, with some exceptions. I was hoping this story would show her to be an exception. But it is not; this is a bad loan and shouldn't have been guaranteed by the taxpayers.

But if a private lender wants to take on the risk; more power to them. Just don't send me the bill.

21 posted on 10/25/2009 11:17:01 AM PDT by HereInTheHeartland (Tyranny, like hell, is not easily conquered)
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To: mamelukesabre
both her and her unemployed sister can get night jobs as strippers

Derrrrrr...need to strip off a few pounds first and ease off the enchiladas con queso!

22 posted on 10/25/2009 11:20:54 AM PDT by tflabo
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To: mamelukesabre

Did the bank provide the loan on “potential” avenues of income or present income? If the former, the bankers are idiots. If the latter, the bankers are idiots.


23 posted on 10/25/2009 11:24:16 AM PDT by Leonard210 (Tagline? We don't need no stinkin' tagline.)
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To: gaijin
an illegal alien berry picker whose annual income was $16,500 and bought as house priced at $750,000.

How much was a down payment and maybe it was a house that housed 7 berry pickers with a combined income of 110,000 a year, and without more facts, this could be a very good performing loan.

24 posted on 10/25/2009 11:26:29 AM PDT by staytrue
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To: Leonard210

why? They don’t have to guarantee the loan. I’d say they are pretty clever.


25 posted on 10/25/2009 11:27:32 AM PDT by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: newbie2008; informavoracious; larose; RJR_fan; Prospero; Conservative Vermont Vet; ...
+

Freep-mail me to get on or off my pro-life and Catholic List:

Add me / Remove me

Please ping me to note-worthy Pro-Life or Catholic threads, or other threads of interest.

Obama Says A Baby Is A Punishment

Obama: “If they make a mistake, I don’t want them punished with a baby.”

26 posted on 10/25/2009 11:28:10 AM PDT by narses ("These are the days when the Christian is expected to praise every creed except his own.")
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To: tflabo

I’m sure there are plenty of fat strippers making lots of money.


27 posted on 10/25/2009 11:29:32 AM PDT by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: gaijin
Their dad advised them not to buy useless things, and instead to buy a home.

Let's see. $283 a week, with a (paid for) used car, should leave enough to get by with the house paid before the $283 a week.

There are people paying all their bills on $400/wk out there.

It will only work if she is frugal, does not spend money on things she doesn't need, and lives a no frills life until she is making better money.

Not everyone has a big screen TV, high bandwidth internet and the latest techno-stuff. Staying a level or two behind the latest stuff is far more affordable.

28 posted on 10/25/2009 11:30:29 AM PDT by Smokin' Joe (How often God must weep at humans' folly. Stand fast. God knows what He is doing.)
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To: mamelukesabre

Hee, hee. I guess it’s a win-win.


29 posted on 10/25/2009 11:32:17 AM PDT by Leonard210 (Tagline? We don't need no stinkin' tagline.)
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To: mamelukesabre

You have a true understanding of how to move on up in America if you lack marketable skills. Do you have experience in any of this? :)


30 posted on 10/25/2009 11:32:57 AM PDT by Niuhuru (The Internet is the digital AIDS; adapting and successfully destroying the MSM host.)
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To: Leonard210

Yes, but for you and I it’s a lose-lose.


31 posted on 10/25/2009 11:33:03 AM PDT by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: newbie2008
I was going to ask about her income, I do know a few 20 year olds who are doing well and could afford this, but then I found this in the article:

The monthly payments on her debt amount to $1328. Her income is $2470, leaving her with just $285 a week to live on. She's paying 54% of her income to make the mortgage payments.

I thought the old rule was the mortgage payment couldn't be more than 1/4th of your after expenses income?

32 posted on 10/25/2009 11:38:22 AM PDT by mnehring
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To: HereInTheHeartland

If she were a non-hispanic, American-born citizen she would not have “qualified” for this loan. But, since she is hispanic (and probably an illegal since there is no agreement on her country of origin) all she has to do is open her mouth and ask and she is rewarded. This is no longer the United States; we now live in an alternate universe where crime and irresponsibility are rewarded and playing by the rules and being responsible are punished. Liberalism and the left are responsible for this, and I despise both with every fiber of my beng.


33 posted on 10/25/2009 11:38:48 AM PDT by ought-six ( Multiculturalism is national suicide, and political correctness is the cyanide capsule.)
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To: ought-six
I have no doubt she has the desire and drive to make this work.
I just seriously doubt that she can and will.

Underwriting decisions should be made on rational things and a persons pie in the sky wishes

34 posted on 10/25/2009 11:42:33 AM PDT by HereInTheHeartland (Tyranny, like hell, is not easily conquered)
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To: mamelukesabre

Doh!


35 posted on 10/25/2009 11:43:01 AM PDT by Leonard210 (Tagline? We don't need no stinkin' tagline.)
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To: Niuhuru

I have a female relative unmarried with kids. One of them is classified as high functioning autistic. I know how the scam works.

I dated a girl once for a brief period that seemed to be unemployed but overflowing with money and nice clothes. It took me about 2 weeks to figure out her scam. I can’t remember the name of the program, but there is a government program that provides day care to underprivileged mothers. She got herself qualified as one of these government daycare providers and received checks from the government. Her official residence was with her grandmother. All her sisters and female cousins had hoards of illegitimate kids. Every day they would dump the kids off at her grandmother’s house(supposedly) and this girl I briefly dated would take care of them.

In reality, the kids never made it to the grandmother’s house and this girl rarely was there herself. She lived at all of her relative’s homes, aunts, cousins, etc, and rotated around every night. THe kids rarely left their own homes. This girl just went from house to house checking on them all day, or taking them on shopping trips. I think the kids looked at her as their mother more than their real mothers.

Her hours she reported as a daycare provider were grossly exaggerated.

I thought she was a college student and I was impressed that she was latina, never married, and no children, excellent english...and also gorgeous. She seemed pretty smart. Boy was I shocked when I figured out the truth.


36 posted on 10/25/2009 11:48:19 AM PDT by mamelukesabre (Si Vis Pacem Para Bellum (If you want peace prepare for war))
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To: staytrue

you raise an interesting point there. I have also observed this kind of housing behavior whereby multiple wage earners contribute to the rent/mortgage. This seems reasonable except you end up watching the standard of living for everyone go down as a result because: A.) the neighbors now have a flop house next door and B.) rental agencies can charge higher rent than a traditional nuclear family can afford soooo, the traditional nuclear family has to look for less of a home to rent or they have to do as the immigrants have done and invite another family into their home which was never designed to house more than one family.


37 posted on 10/25/2009 11:55:41 AM PDT by RC one
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To: mnehring
I thought the old rule was the mortgage payment couldn't be more than 1/4th of your after expenses income?

I thought it was 30% but could be wrong.

38 posted on 10/25/2009 12:01:19 PM PDT by Ladysmith ("A community organizer can't bitch when communities organize." Rush Limbaugh)
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To: mamelukesabre

You work in an ACORN office, right?

;-P


39 posted on 10/25/2009 12:01:31 PM PDT by FreedomPoster (No Representation without Taxation!)
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To: mamelukesabre

Quite smart of you not to get too involved.


40 posted on 10/25/2009 12:07:33 PM PDT by Niuhuru (The Internet is the digital AIDS; adapting and successfully destroying the MSM host.)
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To: tflabo
both her and her unemployed sister can get night jobs as strippers

Or she could be a mail order bride for Japan...they pay by the pound.

</SomethingAboutMary>

41 posted on 10/25/2009 12:20:53 PM PDT by Onelifetogive (Liberals are always one genocide away from Utopia.)
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To: devane617
It’s called ‘reparations.’

Or, as Michael Savage dubbed it, "rape-a-nations".
42 posted on 10/25/2009 12:22:21 PM PDT by Signalman
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To: Leonard210

Agree completely.


43 posted on 10/25/2009 12:24:56 PM PDT by lt.america (wearing my Brooks Brothers shirt proudly)
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To: devane617
It’s called ‘reparations.’

Why are Hispanics getting reparations?

44 posted on 10/25/2009 12:50:50 PM PDT by Ol' Sparky (Liberal Republicans are the greater of two evils)
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To: newbie2008

FISCAL YEAR 2009 HOUSING COUNSELING GRANTEES 12 DISTRICT OF COLUMBIA
13 Washington NATIONAL COUNCIL OF LA RAZA $1,120,501.00
14 Washington NATIONAL COUNCIL OF LA RAZA $150,000.00
15 Washington NATIONAL COUNCIL OF LA RAZA $1,260,117.00 Local Housing Counseling Agencies; Multi-State Agencies; & State Housing Finance Agencies Total: $ 23,831,728.00 MORE- http://74.125.155.132/search?q=cache:AYlHNjQv3jcJ:portal.hud.gov/portal/page/portal/HUD/press/documents/Housing%2520Counseling%2520Grants-byState.xls+%22National+Council+of+La+Raza+%22+site:portal.hud.gov&cd=1&hl=en&ct=clnk&gl=us


45 posted on 10/25/2009 12:56:24 PM PDT by anglian
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City Seeks Properties for Purchase: Implements Neighborhood Stabilization Program
— Thursday, October 15, 2009
The City of Las Cruces is seeking eligible properties for purchase under the U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program (NSP). The program is part of the Housing and Economic Recovery Act of 2008.

Under Title III of the program, the City of Las Cruces received $1.5 million in federal grant funding through the State of New Mexico, to purchase and redevelop foreclosed or abandoned, blighted or vacant properties.

According to Jerry Nachison, Housing Development Coordinator in the Community Development Department of the City of Las Cruces, “The City is initially looking to purchase about ten to twenty properties from owners willing to sell. We’re looking for minimum size - one bedroom, one bath – and up to four bedrooms - single family dwellings, including condos, duplexes and town houses, with at least 150 square feet of outdoor property.” He also states, “The value of the properties sought by the City is between $50 thousand and $100 thousand.”

Once the City acquires the properties, it will transfer them for rehabilitation to non profit organizations such as Tierra Del Sol Housing Corporation, which will use the properties for affordable home ownership.
“As properties are rehabilitated and sold for homeownership, the money generated will return to the City of Las Cruces where it will be used to purchase additional properties. We plan to continue this activity through April 2013,” Nachison said.
http://www.las-cruces.org/news/news_item.asp?NewsID=2177
Corporation Receives Funding to Improve Homes in Colonias

Friday, October 2, 2009

WASHINGTON – U.S. Senator Tom Udall today announced the Tierra Del Sol Housing Corporation will receive a $121,848 grant to repair and rehabilitate the homes of five low income families. FIVE FAMILIES???? In addition, Tierra Del Sol will provide more than $300,000 from other sources to help with repairs.

The funding, from the U.S. Department of Agriculture Rural Housing Preservation Grant program, will help repair leaking roofs, plumbing and crumbling foundations. It will also be used to pay for additional insulation, caulking and energy-saving windows and doors to cut down on monthly energy bills.

“Families in the Colonias all too often do not have access to safe affordable housing. This grant will provide resources for five Anthony families to improve their homes and save money by cutting down on high energy costs,” Udall said.
http://tomudall.senate.gov/record.cfm?id=318597


46 posted on 10/25/2009 1:10:54 PM PDT by anglian
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To: newbie2008

bump


47 posted on 10/25/2009 1:26:16 PM PDT by VOA
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To: newbie2008
Tejada's loan was apparently made on a micro-down payment....

No argument that the mortgage approval was stupid, stupid, stupid. But I have to question a story that picks apart a loan approval but has to use the word "apparently" over something as basic as the amount of the down payment. Why is the amount of the down payment in question?

48 posted on 10/25/2009 3:26:06 PM PDT by kittykat77
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To: Tarpon
And who would do this and why?

Just propping up the overpriced housing the normal consumer wouldn't prop up.

49 posted on 10/25/2009 4:01:52 PM PDT by Vince Ferrer
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To: Thank You Rush

My son bought his forst home in 2008. He found out from his accountant just a month ago that the $7,500 homebuyer credit he was counting on his 2008 return was gone. There was a virtually hidden $75,000 income limit on that program that he or I never knew about.


50 posted on 10/25/2009 5:28:05 PM PDT by George from New England (escaped CT 2006; now living north of Tampa Bay)
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