Lending Programs Changed???

wackman

Has anyone noticed a big change suddenly in the programs offered for home buyers?

I was talking to one of my brokers about a rental I'm thinking about picking up and he said the program I was going to use just got yanked.

I did a little inquiring and across the board it sounds like the programs that have more risk, like interest only, buy downs, etc.. are all going away.

What have you heard and how do you think this will affect the housing industry?

joasis

The sub prime lenders are taking a beating right now, so the mortgage lenders are "reviewing" their criteria...i would not be surprised to see a return to credit scoring and debt loading minimums.

The guy who is asking me to build his now home (I don't like to do customs) told me his bank will only do 80% of the loan....nothing against him, but they want him to have 20% in equity and cash before he gets the loan to build.

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Ed the Roofer

The government watch dogs are beginning to crack down on predatory loans. Ones which offer LTV in excess of equity especially, due to the sharp increase in morgtage foreclosures in the recently released 4th Qtr, 2006 data. Most foreclosures have come as a result of variable rate interest rate loans and equity based value, where market value has actually gone down in many circumstances over the past two years since the 5 % bubble has crept upwards.

Ed

Susan Betz

New Century, the largest subprime, just went belly-up last week. A friend who does appraisals told me 36 subprime lenders have gone out of business since December. It's getting ugly out there.

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Fences of Distinction, Ocala, FL
http://www.fencesofdistinction.com

dirt diggler

im not a lender ... i barely understand mortgages and different loans


but ...

for the past several years - the banks selling loans at low interest rates (knowing that they would eventually rise)

i mean -- it's like they "forced" their own market


can't squeeze blood from a turnip --- and the lenders found some turnips. When it was time to really squeeze for blood ....


it's not good (for the lenders) to have foreclosed homes


in other words .... they brought this on themselves maybe???



?? discuss

Susan Betz

Take a look at this guy:

http://www.iamfacingforeclosure.com/

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Fences of Distinction, Ocala, FL
http://www.fencesofdistinction.com