Been doing some reading and came across 2 questions...


1. I read that a new law took effect that places the Termite inspections on the BUYERS now.... True? Do you see any backlash because of this?

2. Down payments are going to be 20% minimum and very strict income guidelines for the lower rates. When does that take effect? Do you think that will drive home prices down or should one buy now before all the new laws?


Any other major changes potential buyers or people that service (work for) the housing industry should know?

Thanks.... !

Never sold a house but have bought several. I always have my own termite done. I don't trust the seller's agent. Everybody knows someone.

As for the new 20% down payment, the last 6 homes I have bought were with cash. I do see that if people are going to have to put 20% down for the " lowest rates " many will just not get them. I don't see how it will drive down pricing. Can they get much lower out there?

A typical 300k home in Cali would need 60k down... I don't see alot of folks with 60k cash hanging around.
If nobody can buy a house, it's my thought that home prices will have to go lower to get them sold..
That 20% requirement, while a good thing for banks, may screw the housing industry.

I see your point. I miss read you and thought 20% got you the best rate.

The banks have been sticking it to us for years. Deposit your money for. 05% and I will loan it back ay 20 / 30% on a credit card

so you guys all believe that FHA will no longer be available?? OR that 90% with MI will no longer be available? Companies are not stupid... there will always be programs available for less than 20% down IF you are making it your PRIMARY residence. Guidelines have really tightened up regarding how they will determine whether or not its primary residence.

Stricter guidelines for income is a give in. Funds will soon have to be LIQUID not locked up in a pension plan.

Mortgage insurance is on the rise however... so for instance at this moment on 256K Mortgage insurance is 176.00 per month.... VS. what used to be just 100.00... they are expected to jump again in April.

So basically you need to realize the pros & cons of that Mortgage insurance to go above 80% ltv.

There is not a law to my knowledge (and don't see how there would be) making the buyers responsible for the termite inspection. There are "industry norms" as to who pays what but it all comes down to motivation of the seller (and/or loan type). If the seller is desperate, they will most likely pay for Termite repair. If it is an REO with 50+ offers, no chance they will pay for termite repairs. The "Industry Norm" is Seller pays Section 1 and Buyers pay section 2. I have seen it flipped, as well as 1 party paying for both.

Down payments are not gonna be 20% minimum. There is talk right now of a baseline for mortgages to be "qualified" or not which determines if the lender has to hold the loan on their books or be able to sell it. From my understanding it is that a lender must keep a certain % of "non-qualified" (10% -20% or less down - TBD) on their books, which would make the requirements on "Non-Qualified" mortgages even harder. If FHA goes to 10% down, WATCH OUT - SHIT STORM #2 is on it's way. I would guess a 10%-20% Year Over Year decline if this does happen.

Consumers buying a 300k house just flat out do not have $30k to put down, especially during these times. I'm in a hurry so this may not make sense, I'll try and clean it up later.

In terms of termite I agree with SDB. However if I am buyer or seller agent I always get my own report so that I know what is going on. RES Termite Control is awesome. I met Chris on GD and he is the only one my company uses now. His reports are easy to ready and he has always taken great care of my clients whether they were sellers or buyers. RES TERMITE 800-577-9627

I really don't see the gov or lenders requiring 20% down payments. FHA is currently offering 3.5% down and conventional is 5%. Yes you pay mortgage insurance but that is the cost of getting a loan with that much risk exposure. If anything they may just increased credit score requirements or add on pricing hits for LTV, credit, or cash out.

I am more worried about what will happen if the government shuts down FNMA and Freddie Mac. Then we will be pressured into the banks guidlines and portfolio products.

Just my .02

I heard on fox news this morning that housing is down again this year from the year before...And the 20% will be held up...That we never got out of the dip so how can we have another dip as they are expecting..our current dip is just going to get deeper.. Just what I saw on news...I'd like to hear some GOOD news for a change!

That's really good to know... I always forget about mortgage insurance....




I went back a read what I thought was a new law... It was for Tennessee..... :<--dumbass:

I don't want a shitstorm #2.....





Just make sure Chris stays up north.. I catch him in San Diego and I'll go around and spread termites on all his treated properties...
I've talked to him quite a bit, we do sub-contract work for the same guy..

There are some many stats in the news right now it is mind boggling. Gov saying one thing, Realtor Associations saying another, etc.

In reality, Southern California has been steady for the last 2 years. A drop from where we are now would be a double-dip.

Posted today via AFP:



Full story

According to the AP, in several cities housing prices are reaching levels not seen since 2003... the beginning of the boom. Banks are still sitting on a boatload of repo inventory, new housing starts are at record lows, and even Jesus Christ would have trouble getting a mortgage with less than 20% down and an 850 FICO.

We ain't out of the woods yet, not by a long shot.

On a positive note, San Diego is one of only two major-metro markets to show no net loss, or a gain, year-to-year. The other is Washington DC... go figure. As a comparison, Phoenix dropped 9.1% year-to-year

I have seen some of the buyers obtain their own termite report when purchasing a home. I currently have a few escrows there the sellers are paying for the report and repairs, and a few where the seller has provided the report without repairs, and a few where the buyers are paying for their own because the sellers cannot.
The current industry norm has been sellers section 1, and buyers section 2.

Are the GOVT first time buyer 3% down loans in danger?

No honey they aren't going anywhere!!! Go buy you and your honey and your kitties a home!!!

You bet they are. there are 6 homes in my tract that went to auction and were bought back by their lender from November last year until now. Not one person has moved, and not one has a for sale sign on it. So they must be living for free until the banks do something some day. I keep tabs on whats going on in my neighborhood through realtytrac and the auction sites. all of these homes might sell for $400-$500k. But I'm sure they are mortgaged for around $700-$900K. I think the banks are sitting on a lot of inventory, because they don't want to put the loss on the books, of course a lot of this is regional. Those bank stress tests the government just completed are a buch of Bull-sh as far as I'm concerned. It's very ugly out there, and it aint getting better soon.

If I can help with anything please don't hesitate to contact me.

Pretty much agree with everything said above - there used to be an established 'norm' where Seller selects the servicer, pays for the report and Section 1 and Buyer pays Section 2. Nowadays every deal is different - if I think I'm going to have a problem with a place, I'll advise my Seller to order a report beforehand so there are no surprises once we've already negotiated a sale price. Will the work get done? Maybe. Maybe my Seller (or their bank, if it's a short sale) doesn't want to pay and the Buyer pays. I think we paid termite at most one time out of ten when I was doing REOs, usually on VA deals where it's required. Maybe we just negotiate a lower sales price in lieu of repairs (but if the bank finds out there was an inspection done they're going to demand a copy of the report and then the underwriter will likely demand the work get done).

If FHA goes to 10%, the bottom falls out of the entry-level market all over again. They've bumped from 3.0% to 3.5%, they're now offering slightly better rates if you go to 5.0% and I've heard rumblings about 5.0% being the new minimum down before long, but I haven't heard 10% - combine that with rising rents and the lack of mortgage interest write-offs that make it difficult to amass your first down payment and it's a virtual death sentence for first-time buyers who aren't bankrolled by rich family or inheritances.


If Fannie and Freddie go, lending stops. Most of the niche lending and portfolio programs that used to be available are long gone - for some of them, like the 1% neg-am ARM, it's good riddance. I expect they'll come back someday, and to some extent they're starting to, but right now virtually everyone is primarily interested in conforming, conforming, or conforming.


The banks could be pursuing eviction against the occupants of the property without you knowing it. Or it could be that there are tenants in the property - I believe you've got to give a tenant 90 days' notice now before you can even take action against them, or if they've got a valid lease you've got to let them stay through its expiration date and take on all landlord responsibility. Even if it's the former owner that the bank only needs to give 3 days' notice to move before starting eviction, if they've got any clue what they're doing they can tie up their eviction case in the overloaded court system for several months even with ridiculous assertions.

Im getting ready to buy another house and I havent really seen a change from when i first bought back in 2005 other then I can buy a WHOLE LOT MORE house then when I did back then.

For qualified buyers, who can document their income, it IS a better lending climate. Rates are lower than they were, by alot! For a highly qualified buyer with documented income, the only change from the glory days is mortgage insurance, which just depends on % down.

On a side note, 33% of home sales last year were cash transactions. 3.8MM homes are still bank owned. That's a good chunk of homes to work out.

Investors are getting in, the average person is still not buying homes. This housing decline imho will continue downward for a few more years before we see it stabilize.

May not be relevant to the question, but VA lending rules force the seller to pay for that inspection and any repairs needed. Which gets to be a hassle if its an REO. Went through this about a year ago.