Thats right the market has hit the bottom of the barrel!! What we feared most has just happened, all conventional loans starting April 1, 2008 (means funded by) must have a down payment no matter what the credit score is. Not even 800 scores can get a LTV over 97% (All Fannie Mae and Freddie Mac Loans)... Why you say? The reason is simply because all of the Mortgage Insurance companies have decided that they will not insure any loans with LTV (Loan to Values) over 97%. So since the Insurance companies not cover any loans over this limit the banks can't offer these loans because any loan over 80% LTV must have Mortgage Insurance to help cover the risk involved with loaning a high LTV.
The worst part of the changes has been the lack of advance notice given by these companies. I lost three loans this month to the most radical changes to our market in recent memory. Like many other changes made in our industry they were made over night so we just have to adapt and over come.....
With all of the efforts from the Feds to lower the Federal Rates in attempts to spark the housing market. It feels like every-time we make one step forward we take two steps backward..... The only ones benefiting from lower rates are the banks, and not the ones the rate cuts were meant for...... Since the banks are raising the rates and not passing them on, it looks like they are keeping profits at the expense of the home buyers.
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I have also have had several companies that have gone to a strict BK policy. No matter how old, regardless of current score, and circumstances. Companies that institute these policies will only hurt themselves in the long run.