Fannie Mae, a publically traded financial services company that helps lenders serve homebuyers, has been issuing declining market flags during recent computerized underwirting review. The flag calls for a closer look at the property's appraisal to verify the value accurately reflects current market conditions. Unfortunately, it appears most of Northern Virginia is included in this "declining market" area (speculation from the Washington Post says this includes Alexandria, Arlington, Fairfax County and city, Falls Church, and other counties).

But what does all of this mean to you, the buyer?? It means that you're going to have to put down more cash IF you want to buy a property located in one of these markets right now. A 20% down payment will now be 25%, 5% will now be 10%, etc. Mortgage applicants seeking 100% financing will now only receive 95% funding, requiring you again to come up with an additional 5% in cash.

 Don't let this discourage from looking for and buying your new home. There are ways around this....let's talk!

 
Posted by Scott Montgomery Mclean Virginia Realtor on 01/18/2008 06:20 PM   Comments (4)  
This post has been included in Virginia Information

4 Comments on Fannie Mae Labels Northern Virginia A “Declining Market,” Keller Williams Arlington Asks: What Does This Mean?

This is a growing concern with Fannie Mae/Freddie Mac lately. There are a few of these areas in NC as well.

Thanks for sharing that info with the community...this is a concern that we all should share.

01/18/2008 06:26 PM by Flagstar Bank

Yep.  I remember when Fannie and Freddie published the new Guidelines.  They are very rough, especially considering that most families assets are in their existing homes.  The "move up" market is not viable in these markets any way. 

It's only sensible that Fannie and Freddie inflict more pain on home buyers.  After all, it is Fannie and Freddie's perfidy in mismanagement that caused it to come under investigation in the first place. 

Franklin Raines enjoys the $Millions that he walked away with and home buyers are going to pay for it a stinking 5% at a time. 

Things are upside down. 

01/18/2008 06:34 PM by Lenn Harley, Homefinders.com, MD & VA Real Estate

Hey Scott,

Can you point to a URL for this listing of declining markets? 

01/18/2008 06:37 PM by Andrew Lietzow-MBA, e-PRO, SRES (Re/Max Real Estate Concepts)

Andrew, the URL attached to the Washington Post is the article from January 13th quoting a local mortgage "expert" who lists counties in MD and VA subject to the "declining market" label. 

(Article) 

-Scott

01/18/2008 10:52 PM by Scott Montgomery Mclean Virginia Realtor (Keller Williams Mclean Virginia)

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Real Estate Agent: Scott Montgomery Mclean Virginia Realtor (Keller Williams Mclean Virginia)
Scott Montgomery Mclean Virginia Realtor
McLean, VA
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