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Dec 14, 2019
12:56
:20
pm
RexIdaCoug
All-American
I'm curious to see how much the premium is
I don't think it will be nearly as predatory as payday lending or check cashing stores, but there's no question there will be a premium.
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RexIdaCoug
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RexIdaCoug
Joined
Nov 17, 2006
Last login
May 3, 2024
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17,373 (2,313 FO)
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Messages
Author
Time
LA company planning to help consumers buy homes without a mortgage
RexIdaCoug
12/14/19 12:38pm
Is it a mortgage
Cougforgood
12/14/19 12:40pm
I think this exists elsewhere. When I read the details in the past it helped get people in a home but was clearly skewed
Tokolosh
12/14/19 12:42pm
IMO this will help consumers the same way a payday loan company helps a consumer.
Baron
12/14/19 12:44pm
I'm curious to see how much the premium is
RexIdaCoug
12/14/19 12:56pm
It will be hugely predatory IMO. Basically, it is for people who can't afford a home but want one
Baron
12/14/19 12:59pm
So it is a mortgage without the protection of a mortgage or the tax deductions.
Baron
12/14/19 12:42pm
Yeah--joint ownership / tenancy in the home with other parties?
ebv
12/14/19 1:03pm
Assumes consistent rising value. If there's a bursting bubble, those people will be in deep trouble.
Soupie
12/14/19 12:43pm
There's the same risk for mortgage borrowers too.
RexIdaCoug
12/14/19 12:53pm
Sure but banks protect the investment by making sure certain financial criteria are met.
Soupie
12/14/19 12:58pm
I remember a company trying to do this like 8 years ago. They failed.
cheezedawg
12/14/19 12:49pm
<< Deleted >>
Idahofallsblue
12/14/19 1:00pm
I have a client investing in one of these type of companies (not this one) and I
Pasadena
12/14/19 2:24pm
That's expensive. Better to buy it upfront.
Baron
12/14/19 2:39pm
I think it's for people who don't have money for a down payment.
Pasadena
12/14/19 2:43pm
It is a very small market. Not much room for growth. It is only valuable to people with new high income but
Baron
12/14/19 2:46pm
So most young professionals in California?
Pasadena
12/14/19 2:48pm
No not most young professionals in CA.
Baron
12/14/19 2:50pm
Your saying most young professionals have enough savings to buy a house in CA?
Pasadena
12/14/19 2:54pm
I am saying most young professionals don't have enough money to pay the large cost of the fees you listed.
Baron
12/14/19 2:55pm
I guess I don't follow. The only actual fee is $20k. Most young professionals
Pasadena
12/14/19 3:08pm
The fee and the rent. The option fee is as much as FHA downpayment or more on cheaper homes.
Baron
12/14/19 3:16pm
FHA loan is not even remotely possible. We are talking about markets where 1000
Pasadena
12/14/19 3:57pm
It is possible on the low end homes like you mentioned. And if you can afford home in the range it won't take long
Baron
12/14/19 4:06pm
I think you missed the entire point of the program. In two years, the home in
Pasadena
12/14/19 11:43pm
That makes sense on paper but still a gamble. Wouldn't have worked in '08.
Soupie
12/14/19 11:51pm
Your example proves why it is a bad investment. The company makes next to nothing and loses
Baron
12/15/19 5:27am
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