Skip to comments.20 Year Old Buys Home With $183,000 FHA Loan And Just 3.5% Down
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 ...
And who would do this and why?
Housing bubble 2.0 is well on its way
She’s so guilty I feel like throwing up.
It’s called ‘reparations.’
Well then, the flood insurance she bought from the government ought to make it all right.
Federal funding of ACORN resumes in 6 days —the suspension was TEMPORARY.
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?
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?
Projectile vomiting guilty. I need to lie down.
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.
“”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.
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.
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.
The essence of liberalism - rewad bad decisions and punish prudent behavior.
And what about the responsibilities of the buyers? You surrender your responsibilities you forfeit your rights.
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.
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.
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.
Ginnie Mae? I am going to start using that. LOL