The REALTOR called me from a cruise ship. Our pre-qualified borrower--who has been waiting months for the market to fit his budget--finally decided to make the plunge and purchase a rental property in Tucson.
His FICO score is 780. The buyer is a W-2 employee with more than 16 years on the same job. The asking price for the home he wants to buy is 70% of what he figured he'd have to spend. He planned on buying with 10% down and living with mortgage insurance.
The REALTOR was on cloud nine until I told him that the borrower will have to come up with 20% down, as no MI company is willing to take the risk that the borrower won't default at some future date.
Look for Fannie and Freddy to change the underwriting rules for non-owner-occupied housing for the worse in the months to come.
No one except the American Taxpayer is foolish enough to risk their money in a market like this one. Oh! That's you? And you didn't want to risk your money either? Check with the last congressman / senator you elected to office.
I'm Mike in Tucson, your preferred Tucson, Arizona mortgage lender.
Think of me as your local expert.
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