3 ms·

As others commented, to give regular people some degree of mobility. Sometimes you need to buy before you sell to move and grab a job opportunity or get out of

As others commented, to give regular people some degree of mobility. Sometimes you need to buy before you sell to move and grab a job opportunity or get out of a place you're miserable in, so you'd need to have two mortgages at once for hopefully a short time. I'm personally not a fan of such a situation but it's a reasonable one in today's world.

JumpCrisscross 4y ago
> you need to buy before you sell to move and grab a job opportunity or get out of a place you're miserable in, so you'd need to have two mortgages at once for hopefully a short time The FHFA assesses up-front fees on second homes [1]. One could simply delay this assessment, for a fee, and not assess it if e.g. a year down the line the borrower only has one mortgage. (That said, it seems simpler to reduce the threshold to two from ten.) [1] https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Targeted-Increases-to-Enterprise-Pricing-Framework.aspx#:~:text=For%20second%20home%20loans%2C%20upfront,loan%2Dto%2Dvalue%20ratio.&text=%E2%80%8BThe%20Federal%20Housing%20Finance,11%20Federal%20Home%20Loan%20Banks https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announce...
brooksbp 4y ago
> I'm personally not a fan of such a situation but it's a reasonable one in today's world. Not a fan even in today's world. Example: The house next to mine sold for $300k 2y ago. Those owners put about $50k into renovations and sold 1y later for $450k. The current owner did nothing (didn't even mow the lawn!) and 6m later decided to pack up and move across country for a job. He put the house on the market for $650k. It's beyond insulting. That house is going to sit on the market for a long time unless he is willing to make no money or even lose money on the overall transaction.
- smugma 4y ago
  Isn't the current owner losing $20-30K/yr in mortgage+property taxes?
  - naveen99 4y ago
    Also another 20k in depreciation
xracy 4y ago
Feels like there could be an allowance for a very small amount of overlap. Everyone gets 1. You can have 2 for 6mo. Maybe 1 year? Seems like an easy fix for the case that's reasonable that doesn't require people to subsidize the wealthy.
- tanseydavid 4y ago
  From a certain angle it looks to me like subsidizing the lenders (albeit indirectly).
themitigating 4y ago
Yeah, no. That's insane, using government money to fund a 2nd home so you can have more job opportunities while there are homeless on the street

JumpCrisscross 4y ago

> you need to buy before you sell to move and grab a job opportunity or get out of a place you're miserable in, so you'd need to have two mortgages at once for hopefully a short time The FHFA assesses up-front fees on second homes [1]. One could simply delay this assessment, for a fee, and not assess it if e.g. a year down the line the borrower only has one mortgage. (That said, it seems simpler to reduce the threshold to two from ten.) [1] https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announces-Targeted-Increases-to-Enterprise-Pricing-Framework.aspx#:~:text=For%20second%20home%20loans%2C%20upfront,loan%2Dto%2Dvalue%20ratio.&text=%E2%80%8BThe%20Federal%20Housing%20Finance,11%20Federal%20Home%20Loan%20Banks https://www.fhfa.gov/Media/PublicAffairs/Pages/FHFA-Announce...

brooksbp 4y ago

> I'm personally not a fan of such a situation but it's a reasonable one in today's world. Not a fan even in today's world. Example: The house next to mine sold for $300k 2y ago. Those owners put about $50k into renovations and sold 1y later for $450k. The current owner did nothing (didn't even mow the lawn!) and 6m later decided to pack up and move across country for a job. He put the house on the market for $650k. It's beyond insulting. That house is going to sit on the market for a long time unless he is willing to make no money or even lose money on the overall transaction.

smugma 4y ago
Isn't the current owner losing $20-30K/yr in mortgage+property taxes?
- naveen99 4y ago
  Also another 20k in depreciation

xracy 4y ago

Feels like there could be an allowance for a very small amount of overlap. Everyone gets 1. You can have 2 for 6mo. Maybe 1 year? Seems like an easy fix for the case that's reasonable that doesn't require people to subsidize the wealthy.

tanseydavid 4y ago
From a certain angle it looks to me like subsidizing the lenders (albeit indirectly).

themitigating 4y ago

Yeah, no. That's insane, using government money to fund a 2nd home so you can have more job opportunities while there are homeless on the street