Put down the newspapers, shut off CNBC and stop the grieving, there are a wide range of mortgage financing availability at historical low rate.
In the past 7 years, virtually everyone could get a mortgage. Maybe the American Dream was in reach for too many people that weren't ready yet.
There are now 3 divisision of mortgage conventional amounts for the qualified borrower (more on the word qualified later).
In the NY Tri State Metro Area, they are:
$417,000 and under
$417,001 to $729,750
$729,750 and over
Today's rates are running at 6.00%, 0 points for the lower amount to 6.75%, 0 points for the higher level for 30 year fixed rate mortgages. Pretty low!
A qualified borrower will have to demonstrate decent credit (680 and higher), sufficient income and assets to complete the transaction and have some post closing liquidity. If your credit scores do not meet these guidelines, you will have to pay a higher rate contingent on your score.
No income check loans are still available for credit scores of 700 + for self employed borrowers.
Most of the major banks are not offering competitive jumbo ($729,750 +) rates to the mortgage brokers. That is the reason for rate quotes in the 7 1/2% + range.
In my next discussion, I will present the basics of FHA mortgages and how they close the gap for those with lower credit scores and limited downpayments.
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The rates are great. I still think the financing is a little too tight. I have had a couple borrower lately that just squeeked by to qualify and they really made it way tougher then they needed because of some credit issues of the past.