Yep, Eileen--my area is smack, dab in the middle of Florida, a "declining market."  Buyers typically need at least 5% down for a conventional loan here, now.  Plus, if they are buying a condo, they need at least 10% down payment.  That puts some people out of the market to buy but I think tightening up on guidelines is the only way to go so that people who are buying can actually PAY back the loan.  :) 

Thanks for the above info.  Very helpful. 

Oh, how painful it is to have my city on this list...I'm glad you shared.  The more insight we can have, the better...

This is not the first declining market scenario I have experienced and although the quote above and the revised credit score level for some programs seems ominous it is not as bad as it seems because before the "exotic" loans popped up the lending standards were similar as they will resemble now.

Even though credit score puckering has occurred in the conventional side the debt to income is still fairly liberal plus if the housing market you deal with is in the FHA range that is another avenue to offset credit score issues.

Most of the population is above these minimum credit scores the problem as you look back and look forward has been down payment and cash to close. That is more of the problem than anything else from my perspective.

really appreciate this information....I think we all knew this was coming

Lisa,

I work with many relocating buyers. And, most of them, especially from California, Florida and Michigan, can't get their homes sold! 

We need higher limits for FHA put in place and not just a temporary fix.

Natalie,

You'd be surprized how many agents don't want to hear, see or read the reality of the market. I had blogged several months ago about the nationwide slowing...and one agent basically said that I didn't know what I was talking about. I wonder if his area is in the above list. Mine is!

Kirk,

I've lived thru too many down cycles...it's normal, but this particular down market will be worse than most. Too many fraudulent loans given to people who couldn't/can't afford the payments. It will take longer to sell off all the inventory.

Don,

Yes...MGIC doesn't have the reserves to pay for their older defaulting loans. They're going out and trying to get venture capitalist, large brokerage house to help them.

These restrictions should have been put into place months ago.