Comments on: Confessions of a Zero-Down Lender http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/ Seattle's Leading Resource for Real Estate Information Sat, 20 Mar 2010 16:06:23 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: RentR4ever http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-128067 RentR4ever Tue, 24 Apr 2007 21:09:07 +0000 http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-128067 OMG, you guys! I'm staying "down south" even if I have to plug away in my "Bottom of the barrel" 25K job as a "single" (divorced, with SO) mother *forever*! Down here in Thurston Co, we still have homes for under 200K! We also happen to have freaks like me whose COMBINED income doesn't scrape 50K! But I "Have patience, will rent," as the saying goes! Even though my 14 year old station wagon cost less than a monthly payment on your brand new Lexus, I still have hope!!! P.S. Budgets only work wonders when you have money to allot! OMG, you guys!
I’m staying “down south” even if I have to plug away in my “Bottom of the barrel” 25K job as a “single” (divorced, with SO) mother *forever*! Down here in Thurston Co, we still have homes for under 200K!
We also happen to have freaks like me whose COMBINED income doesn’t scrape 50K!
But I “Have patience, will rent,” as the saying goes!
Even though my 14 year old station wagon cost less than a monthly payment on your brand new Lexus, I still have hope!!!

P.S. Budgets only work wonders when you have money to allot!

]]> By: EconE http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96945 EconE Thu, 15 Feb 2007 00:57:08 +0000 http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96945 I'm all for good educations. I'm all for good teachers. To be a good teacher...one must also have a good education. When I google my alma-mater...I read good things. When I google my parent's alma-maters...I read even better things...I'm not surprised...they both went to Ivy League Universities. I googled "University of Phoenix" last night. I had a fun evening. I’m all for good educations.

I’m all for good teachers.

To be a good teacher…one must also have a good education.

When I google my alma-mater…I read good things. When I google my parent’s alma-maters…I read even better things…I’m not surprised…they both went to Ivy League Universities.

I googled “University of Phoenix” last night.

I had a fun evening.

]]> By: Rhonda Porter http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96930 Rhonda Porter Thu, 15 Feb 2007 00:14:45 +0000 http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96930 Jillayne is trying to prove a point from earlier in this post regarding teaching high school students about basic living economics. I'm not sure what the House Key education would include, but my thoughts were to teach high school kids about credit, how interest accrues on a credit card, what happens when you write a check and you don't have enough money in the bank...it wouldn't necessarily be about how to buy home--but these topics would certainly influence it. Veggies, what topics were covered in your class? Jillayne is trying to prove a point from earlier in this post regarding teaching high school students about basic living economics. I’m not sure what the House Key education would include, but my thoughts were to teach high school kids about credit, how interest accrues on a credit card, what happens when you write a check and you don’t have enough money in the bank…it wouldn’t necessarily be about how to buy home–but these topics would certainly influence it.

Veggies, what topics were covered in your class?

]]> By: The First Seattle Veggie http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96911 The First Seattle Veggie Wed, 14 Feb 2007 23:35:34 +0000 http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96911 Rhonda - The recapture tax has certain limits though - I have strong suspicions that we will not exceed its income level for any given year. Jillayne - Not sure if you are asking me or the other Seattle Veggie, but I didn't actually get too much out of the class. An interested high schooler could probably understand the concepts, but without a practical aspect (most high-schoolers are not thinking about buying a house, whereas most attendees of this seminar are considering an imminent purchase), I'm not sure it would be a useful exercise. At the point that we took it, we were several months into house-hunting and in an excellent relationship with our lender. I had also done a lot of reading on the House Key web site. One thing I was intensely disappointed in was the amount that the lenders (my own and the one who taught the seminar) knew about "targeted areas." I ended up educating them about it. If you buy in a targeted area, which includes parts of Capitol Hill, the University District, and most of the south of the city, you don't have to be a first-time buyer, and the house value limits and income limits on the program are relaxed. Rhonda – The recapture tax has certain limits though – I have strong suspicions that we will not exceed its income level for any given year.

Jillayne – Not sure if you are asking me or the other Seattle Veggie, but I didn’t actually get too much out of the class. An interested high schooler could probably understand the concepts, but without a practical aspect (most high-schoolers are not thinking about buying a house, whereas most attendees of this seminar are considering an imminent purchase), I’m not sure it would be a useful exercise. At the point that we took it, we were several months into house-hunting and in an excellent relationship with our lender. I had also done a lot of reading on the House Key web site. One thing I was intensely disappointed in was the amount that the lenders (my own and the one who taught the seminar) knew about “targeted areas.” I ended up educating them about it. If you buy in a targeted area, which includes parts of Capitol Hill, the University District, and most of the south of the city, you don’t have to be a first-time buyer, and the house value limits and income limits on the program are relaxed.

]]> By: Jillayne Schlicke http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96906 Jillayne Schlicke Wed, 14 Feb 2007 23:08:18 +0000 http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96906 Education delivered to Seattle Veggie at the point of purchase, by a non-profit, government-sponsored entity. Seattle Veggie, I'm curious: do you think the concepts you and your partner learned in your program could be taught and retained by high schoolers? Thanks for your insights! Education delivered to Seattle Veggie at the point of purchase, by a non-profit, government-sponsored entity.

Seattle Veggie, I’m curious: do you think the concepts you and your partner learned in your program could be taught and retained by high schoolers?

Thanks for your insights!

]]> By: Rhonda Porter http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96904 Rhonda Porter Wed, 14 Feb 2007 22:55:33 +0000 http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96904 Another Seattle Veggie...I had to do a double take, too! Our company will not do state bond programs (such as House Key) because of the recapture tax. Because if someone sells their home within 9 years (which is a very long time for home ownership these days) the recapture tax is 50% of the gain on the sale (in just 5 years, that could be a significant gain) or 6.25% of the original loan amount (which ever is less). With that said, the can be great programs as long as you plan on growing roots...I suppose a veggie could certainly do that. ;) Another Seattle Veggie…I had to do a double take, too! Our company will not do state bond programs (such as House Key) because of the recapture tax. Because if someone sells their home within 9 years (which is a very long time for home ownership these days) the recapture tax is 50% of the gain on the sale (in just 5 years, that could be a significant gain) or 6.25% of the original loan amount (which ever is less). With that said, the can be great programs as long as you plan on growing roots…I suppose a veggie could certainly do that. ;)

]]> By: Another Seattle Veggie http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96820 Another Seattle Veggie Wed, 14 Feb 2007 16:17:48 +0000 http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96820 Seattle Veggie- How funny, I almost thought I made your initial post. I too am a first time homebuyer (with my partner) through the WSHFC House Key program. As if that weren't enough, I am "Seattle Veggie" or something like it, on blogs. I did a double take. :) I am so suprised how little is said about good programs like House Key. Our mortgage is not stretching us thin, but we would have never been able to buy where we did, when we did, without a program like this. I also appreciated how much "education" is required to qualify. The interest rates are excellent too, and are not typically "suicide" loans. I am glad to see someone else bringing this to the table. Seattle Veggie-

How funny, I almost thought I made your initial post. I too am a first time homebuyer (with my partner) through the WSHFC House Key program. As if that weren’t enough, I am “Seattle Veggie” or something like it, on blogs. I did a double take. :) I am so suprised how little is said about good programs like House Key. Our mortgage is not stretching us thin, but we would have never been able to buy where we did, when we did, without a program like this. I also appreciated how much “education” is required to qualify. The interest rates are excellent too, and are not typically “suicide” loans. I am glad to see someone else bringing this to the table.

]]> By: Rhonda Porter http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96799 Rhonda Porter Wed, 14 Feb 2007 14:58:09 +0000 http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96799 Thanks, Reba! Their are plenty of people who can afford $600k and more homes. They are not the one's with the average income of $60-$80k. Thanks, Reba! Their are plenty of people who can afford $600k and more homes. They are not the one’s with the average income of $60-$80k.

]]> By: Reba Haas http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96711 Reba Haas Wed, 14 Feb 2007 07:28:07 +0000 http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96711 Income stats are typically shown for individual wages and not dual income homes so you are missing out on the possibility that an upper income couple combined makes from $120k to $200k easily. First time homebuyers make up roughly 40% of any single year of home sales so I'm not sure why you're harranging Rhonda about it and making statements that come across as, frankly, a bit elitist. I work with plenty of single clients that make in the range of $60-80k and I consider them on the middle range of the income spectrum. If you have a dual-income client then you might get into the higher price points. An interesting paper that covers income data to 2004 (released in 2006) is as follows: http://www.psrc.org/publications/pubs/trends/e4nov06.pdf Incomes are no where near six-figure for the King County average. Those kinds of incomes are typically quite concentrated. Income stats are typically shown for individual wages and not dual income homes so you are missing out on the possibility that an upper income couple combined makes from $120k to $200k easily. First time homebuyers make up roughly 40% of any single year of home sales so I’m not sure why you’re harranging Rhonda about it and making statements that come across as, frankly, a bit elitist. I work with plenty of single clients that make in the range of $60-80k and I consider them on the middle range of the income spectrum. If you have a dual-income client then you might get into the higher price points.

An interesting paper that covers income data to 2004 (released in 2006) is as follows: http://www.psrc.org/publications/pubs/trends/e4nov06.pdf
Incomes are no where near six-figure for the King County average. Those kinds of incomes are typically quite concentrated.

]]> By: Bill Waters http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96708 Bill Waters Wed, 14 Feb 2007 07:13:02 +0000 http://raincityguide.com/2007/02/11/confessions-of-a-zero-down-lender/#comment-96708 Ardell, I'm glad you posted that. (I've been a BECU member for quite some time) I'm just wondering if people earning a median income of $70-$80K are scraping the bottom of the affordability barrel can really drive the market. If households in that low income bracket are only able to qualify for the cheapest of the cheap condos (Juanita?) who is going to come in and buy from them and allow them to trade up? I don't dount that it is happening, but I'd like to know why a trade up is a reasonable expectation from 2007-2010. Ardell, I’m glad you posted that. (I’ve been a BECU member for quite some time) I’m just wondering if people earning a median income of $70-$80K are scraping the bottom of the affordability barrel can really drive the market. If households in that low income bracket are only able to qualify for the cheapest of the cheap condos (Juanita?) who is going to come in and buy from them and allow them to trade up?

I don’t dount that it is happening, but I’d like to know why a trade up is a reasonable expectation from 2007-2010.

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