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Rainmaker
1,384,727
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Nathan Gesner Unison's shared equity program is nothing new. These programs have been around a long time. Not seeing many might be an indication, that buyers are not very interested. Loftium's approach sounds new, but do buyer's really want to rent a room out in their new home and give up the income to this company? FHA allows buyer's to purchase with a small downpayment. There is an MIP cost to getting the loan, but not much different than paying PMI for a conventional loan.

The so called alternatives, seem to substantilly profit these companies. Yes, the buyer can move in with little down, but is it really worth it.

Sep 21, 2017 06:22 AM
Rainmaker
750,373
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Call me a stick-in-the-mud. But I think except for helping our veterans, folks shouldn't buy a home unless they can put in some equity in the beginning. As for the alternatives, those investors are taking a big risk.

Sep 21, 2017 05:48 AM
Ambassador
903,474
John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

They make it seem like a down payment is a struggle - down payment is only a struggle for a)people who make no money, b)people who spend their money on dumb crap, and c)people that want their first home to be a perfect move-in ready bright shiny mcmansion

 

There are so many low or no down payment options it would make your head spin.  People don't need any money to get a home.  These programs offer less than stellar solutions where there isn't even a problem.

Sep 21, 2017 11:42 AM
Rainmaker
1,559,139
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

Wow, it is amazing when ignorant people write posts & try to make them credibile.

These are the guys I was going to write about today. Loftium

Any home purchase when the buyer does not have 20% is therefore 'increased costs'. What a bonehead.

Sep 21, 2017 06:37 AM
Rainmaker
525,764
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

It sounds like an incredibly high-risk second mortgage plan.

Sep 21, 2017 03:35 PM
Rainmaker
3,372,218
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

There are several programs available for financing. Some work for many and some work for a few. Making the right choice requires a knowledgeable loan officer.

Sep 21, 2017 05:47 AM
Ambassador
4,377,750
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Things are always more expensive when the govt gets involved.

Sep 21, 2017 08:34 PM
Ambassador
3,450,149
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

These companies are in business to make a profit - sadly, they are making their money off of these buyers who can't afford a down-payment or have credit that is in need of repair. 

If it slithers like a fish and smells like one too...yep, it's fishy!

Sep 21, 2017 07:39 PM
Ambassador
2,364,610
Fred Griffin, on leave of absence from ActiveRain
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  This will open a legal can of worms.  Deed restrictions.  Lenders.  Zoning problems and rental prohibitions. 

  To your question, does FHA increase the cost?  Of course... it's called PMI. 

 

Sep 21, 2017 02:19 PM
Rainmaker
1,265,552
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Maybe if they drank regular coffee instead of $7 a cup fair trade specialty coffee grown by a commune and transported to the store from ecuador by bicycle, they could afford a downpayment.

 

Seriously, it's all a matter of priorities.  I worked with plenty of people who would spend $200+ a weekend on clubs and booze, have the latest phone and top fashion styles... and then bitch about not having money for rent.

Sep 21, 2017 11:29 AM
Rainmaker
1,020,876
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

FHA has its place although the life of loan MIP has curtailed my former support of its use. I'm always seeking alternatives for the best fit. Every need is unique and the idea that you can always refinance looms as a last resort.  

Sep 21, 2017 06:27 AM
Rainmaker
3,055,241
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

FHA is the only way some buyers can buy, so an increased cost is worth it to them. 

Sep 21, 2017 05:43 AM
Ambassador
2,897,622
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I'm only sharing my equity with my husband who shares in the mortgage payments every month

Sep 21, 2017 09:03 PM
Ambassador
3,983,810
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

Shared equity has never been a favorite of mine for my clients. In the end it is not in their best interests.

Sep 21, 2017 07:30 PM
Rainmaker
3,983,763
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I have yet seen an FHA loan cheaper thatn a conventional one.

Sep 21, 2017 07:15 PM
Rainmaker
2,854,909
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Nathan Gesner An interesting concept.

Sep 21, 2017 02:56 PM
Rainmaker
5,127,549
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

I'm thankful I don't need to focus on that....

Sep 21, 2017 08:26 AM
Rainmaker
2,828,036
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

FHA loans do increase the cost of buying a home ... that PMI is outrageous! That is the price one pays for not having more money down.  I am not a fan of the alternative.  It may work for some ....

Sep 21, 2017 07:59 AM
Rainmaker
1,036,749
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

After 12 years accepted a FHA loan it was taking way too long.  I am in the position not to mess with FHA or VA.

Sep 21, 2017 07:21 AM
Ambassador
1,657,061
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I like the answer from Ken Jones. That about covers it.

Sep 21, 2017 07:20 AM
Rainmaker
1,222,892
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Let's ask a mortgage broker here at ActiveRain.

Sep 21, 2017 07:16 AM
Rainmaker
3,219,772
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

This is way above my pay grade... can't say I've ever really looked at relative costs. And I leave it up to my clients to discuss with their lenders the most cost-effective financing instruments they qualify for.

Sep 21, 2017 06:09 AM
Rainmaker
5,512,838
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thanks for sharing this link.

Sep 21, 2017 05:48 AM
Ambassador
4,301,228
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Nathan Gesner - excellent answer from Ken Jones, ASA, SCGREA.

Sep 21, 2017 10:42 PM
Rainmaker
4,581,423
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Nathan,

You have great answers here.  A

Sep 21, 2017 04:11 PM
Rainmaker
3,248,378
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

I think that is the first time I heard this in years.

Sep 26, 2017 10:58 AM
Rainmaker
1,560,741
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Geneva Financial, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

The desperate will seek alternatives and often not the correct ones.  FHA would be my choice if in this situation.

Sep 23, 2017 04:38 PM
Rainmaker
4,432,467
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I do not know.

Sep 22, 2017 07:22 AM
Rainmaker
4,797,884
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I will check this out.

Sep 22, 2017 06:31 AM
Rainmaker
3,054,229
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Dave Halpern nailed this one!

Sep 22, 2017 05:51 AM