There is no money to lend except from UNDERGROUND BANKS

John, thanks for the post.  I agree.  My neighboring banks are also loaning money.  In fact, one of them recently  came to visit me.  And again, not much has changed, so don't always listen to the news.

John, The crisis has not moved down to the local, community bank level (if that is what you mean by underground). Because of reserve and capitalization requirements, they have smaller sums to lend up to 2 or 3 million. Obviously smaller amounts are perfect for their balance sheets. The banks that are really affected by the credit crunch are the "big boys". There are 8,500 banks worldwide and only about 100 of them are iin trouble because of the lack of credit. However, if the financial markets do not start pulling in the reins, it is going to start moving to the smaller players and then we are all in trouble.  My advice?.....go get it while you still can. Sorry for the gloom and doom, cynical side, but I like to step on the side of reality.

Have a great day!

Bo

My favorite local banker gave these words of advice:

"Calm down".

 As money gets put into the large investment banks, it will trickle down to the local level and stabalize consumer sentiment. Just need to ride the wave.

Not sure if I believe its all that easy, but for most people with jobs, decent credit scores...they can get loans for things they can afford. No more whacky ratios and no docs.

Good post for reality check.

PAR

Hey John, This topic makes me scratch my head a bit and wonder what the heck the media is talking about.  If you are a reasonably qualified buyer, there are still zero down programs, FHA 3 1/2% down and low down Conventional products readily available.

Thanks for reporting on the reality of the current conditions.

The money and the means are there, though I suspect a cold question would simply prompt a response to gain a new client, which is not unlike our own methods to gain an appointment. I wonder, if you were to get more specific on the questions---would they answer so non-chalantly?

We have money to lend! Come and get it!

I have the same response you do-there is money out there to lend.  This is good news for our buyers.

Great post. The banks do have money and are willing to lend it. Of course they are only lending it to folks who can and will pay it back. It really isn't too difficult to understand.

Hype ~ Fear ~ Banks are loaning out there, FHA IS STILL ALIVE AND WELL.

Amen -Preach it Brother! -We still have 100% programs with a 620 score. The media keeps a blind eye to the government programs that have always been around and still are:

1. VA Loan: 100% of the Sales Price and the Seller can pay Closing Costs (Yes you have to be a veteran -but there are a lot of those out there -right?)
2. Rural Housing Loans: 100% of the Appraised Value -Seller can pay Closing Costs or finance them if Appraised value results in enough equity (As always -property has to be in gov-defined  "rural"areas and income restrictions apply) 
3. State Housing Programs: No Down Payment out of pocket since the programs supplies the Downpayment 2nd & 3rd mortgages that may be forgivable (Yes there are incoem restriction -but not as bad as Rural Housing
4. Finally FHA still only requires a 580 score and only a 3% down payment

I agree the media has it all wrong - people need to turn off the panick tube and talk to their lenders themselves instead of having someone tell them what to think and believe!!