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a problem with ditching banks: they're the only ones doing FHA loans for first time home buyers

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yurbud Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-17-10 02:05 PM
Original message
a problem with ditching banks: they're the only ones doing FHA loans for first time home buyers
My wife and I are trying to buy our first home, and want that low FHA down payment of 3.5%, so I called our credit unions which is one of the bigger ones in California, but they said they aren't authorized to handle those.

When I looked up FHA authorized lenders there were only two big banks and a lot of small companies I'd never heard of. While I'd like to support small businesses, I'm a little leery of tying up a couple of hundred grand with a company that might be part of a Wall Street scam, that will sell my mortgage to one of the big assholes, or simply engage in their own small scale chicanery.

Credit Unions should be allowed to do every possible program like this, and given their more careful practices, possibly with less stringent requirements than imposed on banks.

Now I kind of feel like I have to sell my soul to the devil to get a house.
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Warren Stupidity Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-17-10 02:07 PM
Response to Original message
1. The banks will hold your mortgage for about 3.5 seconds
before they sell it to some organization you never heard of.
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louis-t Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-17-10 02:14 PM
Response to Reply #1
4. Some loans are sold before closing.
It would make your head spin to try to figure out who they sell it to, or if you are just paying a loan servicer.
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abelenkpe Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-17-10 02:09 PM
Response to Original message
2. don't buy a home
this year if you can avoid it. Honestly, the crisis is not over and even with an FHA loan you could find yourself in a bad spot.
We'd like to buy a home too, give the kids a yard, etc. but the time is just not right. Atleast not in LA. Might be different where you are.
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yurbud Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-17-10 02:40 PM
Response to Reply #2
6. Louisiana or Los Angeles? I'm in Santa Monica
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Xipe Totec Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-17-10 02:13 PM
Response to Original message
3. Bank of Nikolai
Give me your money and I take care of it, no problem.

You can trust me. Look, I have pen.

http://www.youtube.com/watch?v=0o8XMlL8rqY
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OneTenthofOnePercent Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-17-10 02:37 PM
Response to Original message
5. Well, the loan agreement isn't too bad. Get a fixed rate FHA loan and that can't change.
Does it matter who the payments are going to? They can't change your agreement.
My mortgage has been bounced around 4 tmies in the last two years.
The payments and interest will stay the same so what do I care. :shrug:
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-17-10 02:40 PM
Response to Reply #5
7. Same here.. we even had it sold to Countrywide
I think we made ONE payment to them, before it was sold again..to Citi..and now it's with AHMSI (whoever the hell they are)..I can;t even remember all the ones we've made payments to since 1982 :)
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Name removed Donating Member (0 posts) Send PM | Profile | Ignore Mon Jan-18-10 11:31 PM
Response to Reply #7
9. Deleted message
Message removed by moderator. Click here to review the message board rules.
 
Statistical Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-17-10 02:49 PM
Response to Original message
8. Shop around and get best deal because your mortgage will likely be resold regardless.
Edited on Sun Jan-17-10 02:50 PM by Statistical
My first mortgage got resold BEFORE IT CLOSED. Yeah my closing paperwork had forms already filled out showing who would own our mortgage once closed.
That mortgage then got resold 3 times. Wachovia to Countrywide to BofA.

Our second mortgage got resold less than 2 months after closing.

So don't pick a bank based on the idea/belief they will hold your mortgage. Money is fungible. Your mortgage will get sold, resold, resold, chopped up, securitized, repackaged, and ultimately end up same place no matter who originates it.
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