Originally Posted by Jerry
You dismiss the isseu based on the idea that for people to get tens of thousands of dollars in free equity, the value of the houses would have to 'overinflate'.
You know that's not the case; as you dont want to have to admit that you dont REALLY have an issue with people getting free equity at the expense of taxpayers, you'll continue to avoid the point.
Last edited by Goobieman; 02-18-09 at 01:14 PM.
As far as income goes, at the time I made the purchase, I ran a carpentry company during the construction boom. I made a killing in those days. Now, I no longer run that company and have taken a severe pay cut from my income levels at that time*. My payments are about 50% of my current personal income (the loan is only in my name, so I don't need the wife's income).
That's assuming I put 20% down, which I didn't. I do qualify, and could make a fortune off of this in the long run if I was of that sort of person, (which I'm not).But if you do qualify, you could only knock off 5 -10%. That's the current market value difference.
* One of the major reasons I took an FHA loan and only put 3% down was so that I could remain liquid and have enough of a reserve to prevent the worst case scenario if the construction industry went belly-up. It was definitely the right move.
Tucker Case - Tard magnet.