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Mortgage lending - "the times they are a changin"

By
Mortgage and Lending with Peninsula Mortgage, Inc

We are being bombard daily regarding the subprime meltdown and its possible negative effects upon the conforming loan market.   Much of this media hoopla is true.   Underwriting guidelines are becoming stricter every day and a borrower that may qualify today may be out of luck tomorrow.

This means that real estate buyers with challenged credit, or no down payment, or undocumentable income may have trouble finding a loan program.  FHA, VA and Fannie Mae's My Community program may be of some help, but there will be some people who just won't be able to get financing.

So tighten your seatbelts... it's going to be a bumpy ride for the rest of 2007 and perhaps well into 2008.

Fran Gaspari
Patriot Land Transfer, Inc. - Limerick, PA
"The Title Man" - Title Insurance - PA & NJ

Cathy:

My seat belt has been tightened for almost 2 years now. I'm having trouble breathing. Nice post, however.

Fran

Jul 30, 2007 10:08 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

It might be longer than that in my area of MD and Northern VA.

Pirces are holding here.  But, little is selling.  Sooner or later sellers are going to have to let go.

I believe we're in for about 2 more years of tough times here.

Jul 30, 2007 10:14 AM
Leo Namiot - LeoLends.com
Canopy Mortgage - Leo Namiot - Saint Augustine, FL
More than just great rates

The melt down is starting to trickle into the prime side now...where will it end?

http://www.smartmoney.com/onedaywonder/index.cfm?story=20070730

Jul 30, 2007 10:26 AM
Joe Adams
Major Mortgage USA/Branch Manager - Montrose, CO

got an intersting email from one of my lender reps today, it basically stated that full doc conventional deals are wonderful and the ALT A and Non Prime which is any non full doc program will be hurting more

Jul 30, 2007 10:29 AM
Alan Burwell
McHugh Realtors - Sequim, WA

Hi Cathy

It's good to see you blogging now. :)  Welcome to AR.  Hearing what's been happening with the sub-prime lenders and the rates going up, I'm glad I got into a nice small fixed rate when I did. :)

Kathy

Jul 30, 2007 11:33 AM