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Are these pants getting tight, or is it just Real Estate that is getting tighter?
Are you impressed with my attempt at a catching title? 
I am sure everyone involved in Real Estate has personally experienced some sort of tightening of the market, I thought I would give everyone an update on what I am seeing on the lending side. 
Back in the prime of the market, lenders were open to just about every situation.  If you had a FICO score over 620, you could get approved up to $750,000 with just 3 letters of reference from people that you have done business with.  You wouldn't even need any reserves showing that you could put money aside.  Wow have things changed.  That same lender that offered that program, has tightened up to the point that they don't do this type of loan whatsoever.  Stated Income loan with 100% financing has dwindled tremendously.  Some lenders are still offering it, but the number of them has tanked.  The reason for these cut backs is that the lenders that were offering these programs, have continually loss money on these loans.  The number of first payment defaults in this type of loan has gone through the roof. 
It makes sense to stop offerering these loans.  Lenders generate about $1000 total in ... more

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