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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: ajtj99 who wrote (186029)	2/23/2009 4:37:37 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 306849

your point is valid, and I am sure that is what the Obama admin is thinking, except that we are in the middle of a bleeping CRISIS which seems to be lost on them, and people today who we are trying to keep from walking, do not adhere to those ratios. I also take issue with them for other reasons. 30% across the board is just too pedantic. Doesn't apply to any high earners etc. But thats fine, apply that ratio for govt backed things. But to use it in an Obama housing RECOVERY PLAN is just lame.

To: ajtj99 who wrote (186029)	2/23/2009 11:37:24 PM
From: Nancy	Respond to of 306849

Exactly - the year was 1989, our second home. We still had our first home and did not want to sell in a depressed Houston market, but did not have a plan to turn it into rental property just yet. Our mortgage company's manager tried really hard to coax us to put the 2st home as rental property and stated a projected income, so that we stayed in the 30% ratio, as w/o the estimated rental income, the ratio would be 34%. We were pretty dumb back then, insisted we did not want to do that we we did not plan to rent it out... Oh, we also had a 20% downpayment on the house, too, so we did not have to pay the PMI. So a 30% debt to income ratio was THE Norm 25 years ago. I dont have an idea when such lending standards completely went out of the window and got us into such a mess - interest only loan, pick your payment loan, all the "stated income" loan, aka Liar Loan...