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And welcome you are listening to watching the Financial Survival Network. I'm your host,
Carrie Lutts. Well, we're all deadbeats now, at least the current
administration. As their way, they proposed a rule that I guess all's fair
in the love and war and politics and the mortgage finance. Basically my understanding
of it is, and Debbie Bloyd is with us. Shall love further elucidate
the subject that an additional fee will be charged on mortgage borrowers so that the
good people will pay for the bad people and make the government whole? Do
I have that right, Debby? You do? I mean it's the dumbest
rule ever. Right, So, now we're having to give money to the
people that don't have and really, you know, carry it doesn't go to
the people that don't have the good credit. It's just a penalty for those
of you that have the good credit. We don't know actually where it goes.
Well, so the people with bad credit, do they have to pay
this? No, No, because they haven't. They they can't. If
they could pay any money, they wouldn't have bad credit, right, they
wouldn't let things pile up and be late. So I don't know where the
penalty goes, Like, if all the good borrowers are paying it, where
does it get applied? Because how are you gonna give it to the bad
people unless the lenders give it? I don't know. They haven't said yet.
Who gives it? Yeah, well, probably goes to some government slush
where they can do whatever they want with it. But what's a fee going
to be? Do we know that yet? Oh, we don't know any
of that yet. So it can be four to five hundred dollars, or
it can be a percentage. I don't think they've finalized any of it yet.
It just whatever it is is going to start May first, which freaking
everybody out that's trying to buy houses because they don't know what's going on,
and we don't know what's going on. It's nuts and the last thing we
need in the current real estate environment is yet more uncertainty. You're right,
yeah, I mean, you know, it's hard enough to try and figure
out how to buy a house right now, what the rates are going to
be, what the rates are going to be six months from now. We've
got people that are hesitant to put in an offer because it's so volved.
They're like, we'll just wait. I mean, we're gonna see. Well,
rates are only going up, they're not going down any right now.
So all the people waiting to see they're not doing themselves any favors. Yeah.
So so what is a HomeBuyer to do here that I mean, well,
I mean, if you're renting, you don't want to keep paying rent
because you're paying the mortgage for somebody else where. There's a house or department,
you're paying someone's payment, right, So if you can afford to buy
something of your own, it's better than renting. But if you don't have
a cash flow, So you know, everybody that could have a house,
carry it said, have already gotten a house in the last few years.
They got it rates for low, So those people aren't moving. There's not
a lot of choices on the market, and the choices on the market and
any state gets snapped up pretty darn quick if they're in good condition. Now,
if they're not in great condition, people are like, yeah, I
just you know, maybe I should just wait and find something better. So
it depends greatly carry on the price range that you're in. I have a
girl that's looking for condos and she can't even afford that, but the real
state will keep taking her out. But I can't qualifier for much, so
she doesn't like what she can afford. Then it's make more, pay off
your car, get another job. I mean, there's other types of things
you can do, right But I think people are stuck and confused because they
don't understand the money market in the money world right now. Yeah, so
look, so what are you telling people to do here? You know,
I'm telling them if you know, I sat in an open house this weekend,
and you know, people came by and they were looking for rental property.
But you know, to make a cash flow, they're going to have
to pay cash for it. The rates for an investment property or in the
sevens now and so if you can cash flow the property, go ahead and
buy it. And they're like, well, I really this whole cash flow
and then they look at me like I'm the problem, and I'm like,
well, they need got to put more money down, but we don't have
more money down. Well, then maybe you want to sit on the sideline
because the numbers are not going to work for you, or yeah, if
they don't work to buy it, you've got to buy it much less expensive
house to rent out. And they're like, well, I don't want to
be a slum lorder. Okay, then maybe you shouldn't play in the market
right now. It's like going into a Jaguar dealership and saying, I really
would like this payment to be two hundred dollars a month and they're like,
yeah, well it's eleven hundred. You're like, yeah, that's not going
to work for me. What do they think? What do you think the
jag dealership is gonna say, you know, oh, okay, because it
won't work for you, change it. Oh, they say, go buy
a buug or something. Right, They're not gonna change the way they do
their business to reflect you. You need to make more, put more down,
do something different, or not do anything at all. And I think
a lot of people are just hate to think carry they're just entitled. I
want a home. I want to be able to buy something and I can't.
Well I don't know, be better make more, put more down.
The numbers are not going to work out for everyone want right now, this
is not a I mean, Biden's trying to make it a god given talent
right to get a house. So it's a it's a right. And yeah,
well if you wouldn't know it when you hear people right, I know,
you know, if you've gone through a divorce, if you've had a
bankruptcy, if you've gone through a foreclosure, it's gonna be very tough to
get a house. If you're self employed and you haven't paid your taxes and
you're using a traditional loan, it's going to be hard to get a loan.
You know, then take care of your business. Not everybody gets to
buy a house, and everybody's whining about buying a house. So it just
doesn't work like that. This is not an entitled business. Okay, So
so how should it work? What are you supposed to do? And you
like this, You've got to You've got to put some money down. So
you know what we're seeing is, you know, I'm in Dallas and in
the being main parts of Dallas. You know, housing is very expensive and
it's only going up. The cheaper homes are on the outskirts of town,
which the outskirts of town keep moving right, just like in Florida, just
like anywhere else. If you've got to get out to the burbs, well
I don't want to drive an hour and a half, Okay, then don't.
But you've got to find something to live in, then you mind be
a renter. I keep telling people if they're unsure about this and they don't
like that, you know, car, I've had a client out looking for
a house for a year and a half. Yeah, and it's not because
there's a lack of houses. It's because they're very unrealistic, and the longer
they wait, the worse and guests. You know, they were looking at
not so pretty houses a year and a half ago when they could have bottom
at four and a half percent, but they were looking at a lower price
range and that did not make their standards. Okay. So then back then
they were looking for a house in the five nineties. Now they're looking for
houses at eight hundred and that's the price a house they want. But now
with the interest rates, they've waited so long they can't afford it and they're
mad. Well, if you move slow in today's market, you're not going
to be happy. Yeah, it will move fast, right, Yeah,
So what do you? I asked, what do you do? What do
you do? You decide faster? You you give pre approved for a mortgage
with someone like myself, We tell you what you can afford. Then you
go out and you find what that brings. And if you do not like
what it brings, you either up your game and make better income, get
a better job. And everybody in their dog is hiring right now, So
get a better job, make invest in yourself, or you go back to
being a rented Yeah. Those are your only choices, all right. And
so I think that's a really tough pill for a lot of people to swallow.
All right, Well, that's tough, right, I mean that really
is. So you you need a house, you want to move, you
don't want to pay rent, and what are you supposed to do? Right?
I mean, you got to either raise the bridge or lower the river.
Right. So you know, I tell a lot of people this little
girl, you know, try to get out a loan for me this weekend.
And I don't like honey, you just don't wake an up. And
she goes, well, I make enough to pay rent for that much.
I go, yeah, but rent is not being qualified through the government to
get a loan, so bait. As long as you can make your bills,
they don't care. There's not a formula like for loans. So they
just don't understand the basic money principles. Yeah, that's really it, right,
they don't understand money. Yeah, they think if they can afford eighteen
hundred dollars rank, they can afford eighteen hundred dollars at a house payment.
And no, it's not equal. It's qualifications are totally different, all right.
So so I'm gonna need these people who this kind of attitude, is
it everybody not? Oh my gosh, Carrie, I talk to people all
day every day. They just don't get it. And you know, they're
investors. There's people that want to start investing because they hear now's the time
to buy, and they've taken some course online that says they can get a
house for no money down. I'm like, no, not an investment property.
They're like, well, my class said, and I'm like, well,
that's a bunch of crap. That's not true unless you find it for
sale by odor or fire sale or foreclosure, or someone that will sell it
to you and you run it back to them. I Mean, there's all
kinds of those one off stories, but that's not the reality of the market
today. That's so true. And we know that the buyers aren't bullys firmly
affixed to reality, right, true, and neither are sellers. There's a
lot of people that thinks their houses are worth, you know, ten percent,
twenty percent more than they were last year, and that's just not the
case every the case Shiller report just came out today. It's very difficult in
some cities to sell your house or when you think it's worth, it's only
worth when someone will give you for it, all right, So that's what
it's going to be my next question for you. Then, our housing price
is actually going down? Have they stabilized? Obviously, this is a market
to market situation. Is true in Texas or Florida, not necessarily true in
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So if you're moving it. If you're moving from a city and you're
trying to sell a house in a city that no one's coming into, you're
going to have to wait longer to sell your house for less. If you're
in an area where everyone wants to move Florida, Texas, Arizona, you're
going to stand a better chance of having your value hold. Or if there's
competition, like there are some houses that go on the market here in Dallas
carry and because they're pristine and they're perfect, even though they're two million dollars,
they're selling within a week because they're moving already. They're beautiful. There's
nothing they has to be done to them. Then there's other houses that are
eight hundred thousand dollars that have been on the market six months because they need
a lot of work and nobody can qualify for the loan and have the cash
to fix it up. So it takes that ride and buyer at any price,
they just have to be looking for it. So in the good old
days, you had owner financing and they would basically loan you the deposit.
But you can't do that anymore under the current market to conditions here under the
card regulations, because you've got a show income and you've got to show where
the down payment came from, and they really annoy you about it. I
went through a while ago, that's right, where did this come from?
And I said, well, it came from here. I made it.
Oh, you made it? Like you know? Are we talking the same
language here? So you can't get owner financing? No, you can get
limited owner financing, right sir? How much can owners can chip in?
The closing cost they can and they can give you. They can give you,
you know, five thousand, ten thousand, a twenty thousand a closing
whatever you negotiate. I negotiated with a guy last year. He got twenty
thousand towards closing costs and just to buy my house. Instead of lowering the
price, they just gave him the money because they wanted to keep the integrity
of the appraisals for that neighborhood and the people wanted to get out. So
a lot of people have made the move to another residence when they could afford
it, and now they're making two house payments. And some of them are
willing to make great deals. It all comes down to carry their personal financial
balance sheet, right, how much money do I have coming in? How
much do I have going out? And you're more willing to cut those deals
if you're under duress, yes, of course. Hey. So one other
thing that people do often is they'll put in like a renovation credit or the
kitchen that's payable on closing, right, right, And that'll go as long
as you don't go to overboard with this stuff to the point where you're putting
nothing down. Hey, what, let me ask you what to is now,
as far as I'd see that loan maximums have been increased in many markets.
What in the down payment requirements? Well, so FHA is always three
and a half percent, But when you raise the FHA loan limits, you
increase what kind of house you can buy for them of the market. So
FHA was always going to be a first time whole buyer's loan. So in
Houston, I closed one last week. It did not fit the FHA requirements.
They had to go conventional, which means they had to put five percent
down and it's you got to have your job longer. And this girl just
got out of grad school. It was harder to get her qualified and her
credit wasn't as good. But in the Houston area that they were looking in
was more expensive than the FHA limits, so it would have been easier to
qualify for an FH loan. However, they could not because the house of
praise for more than that low limit. So the low limits are there to
put you into different categories. But what a first time whole buyer can buy
in Houston Maybe five hundred thousand and one neighborhood and maybe two hundred and another
neighborhood. So a lot of the zip codes or the counties are different,
and that's why it's different in different states. It's easier to qualify for an
FHA loan at three and a half percent down because they take in consideration your
job history, how long you've had credit. They let you run your new
borrow worse through that program easier Conventional want you to have a two year work
history. You know, a lot of people when they get out of grad
school or they get their first jobs, they can qualify for a house,
but they can go conventional because their job history isn't long enough. So that's
where FH comes in. And so FHA has been raising those loan limits to
get more people in that program. Right, I see you like and Florida
here at the single family home, they're up to a million dollars. Now,
no, that's what I heard. Let's well, you know, eight
hundred may not cut it in your neighborhood. Care you're in that up here,
not mine neighborhood. Well, this looks like a private scam site.
Let's see loan limits, Lauria. It was some search thing there. Yeah,
let's see what it really is. Yeah, let's see but I know
they raised it and oh, well, for fifty three Florida counties, it's
four hundred and twenty thousand for a single family. But so at the House,
that means that the House of Prizes for appraises for four fifty they can't
get that loan. It has to be more twenty five. Then the loan
balance has to be four twenty five. So if you're trying to borrow that
much, that's fifty three counties. I think there's eighty something here in Florida,
and you know some of them go up to a million, eighty nine
thousand. You know, it just depends on what neighborhood you're in. And
you know they want to they have to extend limits to every county because you
know, the government wants to play fair carry but it just maybe a million
in one county at eight hundred or six hundred and another. Yeah, here
we'll see you. I'll tell you exactly. I found the chart finally get
you know, how to google, and like in some counties it's or seventy.
I'm in Palm Beach County, like not on the island, it starts
with five to fifty seven or a one unit and goes up to and by
fifty seven looks like it. No, that means if you're putting your money
down and after you put your down payment down, the loan that you're getting
is higher than that, you cannot go that tide of level you can't go.
So it's just qualifications, you know, a lot of the qualifications or
two years work history. Credit scores got to be so much, so much
down It's not always down payment. Sometimes he just haven't been out in the
world with credit history long enough. That's why that FH loan is there.
Yeah, now I'm got me curious here. I gotta se Miami Dades by
fifty seven also, but Okaloosa County, I don't even know where the hell
that is is six Z three so they must have like no houses there.
Yeah. Yeah, It's it's crazy how these things are regulated and done.
And then you know a lot of people, a lot of homeowners do it.
Think right now, with you being able to google all that in two
minutes, people will google stuff before they call me, but they like they
have but they're totally clueless to get clane. And I'm like, with all
of the you could chat gpt it and it would tell you how to get
a mortgage, So you'll just tell chat GPT to fill out your mortgage application,
right, yeah, I sure wish. But you know, people don't
know what the ramifications are for what they do. So we've had people that
have had two jobs and they're like, well, I was told that if
I have two jobs, I can count them both, not unless you have
them both for two years, right, And then I have people say,
well it's ten months, Okay, ten months is not two years. That
fails, you know. You know, so people are not exact on anything,
and I have to be the exact person. They don't like it because
they're like, well but it's close enough. Yeah, that's pop underwriter.
It's not clear right right za if I didn't know better, I think you're
getting a little burned out here. I am, you know that. But
you know what, people, I have a closing next month. Carry the
people have waited and built a house. It's four million dollars. Now they've
waited a year and a half for this house to be done. And the
rules have changed for bank statement loans like a hundred times since we started.
They went from ten percent down last summer. So now they have to put
twenty percent down on four million dollars. That's a lot of money. Yeah,
that's so you're talking another four hundred k. That's substantial. Well,
when we talk in a year, where do you think the market's going to
be then, But oh heaven, you're ball Oh my gosh, it gives
me a headache just thinking about it. I think the race will come down
a little. I think consumers will get more accustomed to the rates being high
like this and they won't still be remembering the three percent days because that's not
going to happen. And if you're waiting on that, I think people are
going to get more realistic because I think the economy is going to be doing
worse next year. Yeah, I think there's a good chance of that based
on all the layoffs are seeing, especially in the tech sector, although in
certain key markets like Texas and Florida, definitely real estate slowed down. We're
definitely seeing rice cuts, you know, Like I'm a member of MLS here
in Florida, in Peach County and the Miami it's called IRA Miami Bartie,
and you know, I get the price cut notifications like constantly coming in and
I think that's the end the looking ahead. In the meantime, though,
if you could take on any more people who need your help and who will
hopefully do a little homework on their own and not just dump on you.
And what you're talking about is clients dumping on you. They just don't understand.
Yeah, how did they reach you? How did they connect with you
on the web? And get more infoe So money Strategies with Debbie dot com
is a website that has a contact page. They can get with me.
They can call me. My numbers on there as well. You can go
to dlbeing Mortgage Services dot com and find me. There's there's lots of ways
out there, and I've got a phone number. I'm on TikTok, LinkedIn,
I'm on Instagram and Facebook is under Debbie Bloyd. So just find me
and I will be happy to help in any way I can and get you
on the right road. Teach your parents how to buy a house, you
how to buy a house. How I have to educate the whole family?
All right, Well, we appreciate that. If you've got a question for
deb you can always shoot us an email and we will get you with an
answer. The link to her site is in the show notes for this interview
on Financial Survival Network dot com. Make sure you go to sign up for
your free newsletter, Just One One out today, covering a lot of these
topics. Deb thanks for coming on. We'll talk to you again soon.
Thank you bye. Thanks for listening to Carrie Lenz's Financial Survival Network, your
solution to today's trying times. For the latest, go to Financial Survival Network
dot com. Financial Survival Network now more than ever,