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Beat the Clock for Buyers and Sellers - the implications of the Dodd/Frank Act

By
Real Estate Agent with REMAX EXECUTIVE REALTY

bankerBuyers and Sellers!  You have 12 months to beat the clock!

Buyers! If the Dodd-Frank Act goes into full effect next April, you will have to put 20% down in order to make a home purchase, unless you finance through FHA, or you can find a lender who will hold your mortgage in-house.  Starting next April, you will hear the term "QRM"-Qualified Residential Mortgage.  No loan will make the QRM standards unless the buyer puts 20% down and has a minimum credit rating of 740!

Sellers! Imagine if the only buyers who can purchase your home are those with 20% to put down and have perfect credit? Pretty major impact on the number of qualified buyers, wouldn't you agree?  If you are sitting on the fence trying to decide if this is the right time to sell, the Dodd-Frank limitations on home mortgages ought to help you off your fence pretty fast!

The Dodd-Frank Act went into effect April 1, 2011.  That's right, it's ALREADY in effect - but only partially.  The balance of the requirements don't hit the market until next April.

So, if you are a buyer thinking of purchasing your first home the widest range of mortgage options are available to you right now.  In 11 months it will be a totally different financial landscape, should all of the requirements go into full effect.

And if you are a seller, the widest pool of buyers is out there for your property right now.  In another 11 months you will likely have to work a lot harder to sell your home.

 

 

Posted by

Margo Otey

Hi Performance...Outstanding Results!

REMAX EXECUTIVE REALTY

(508) 439-9717

 
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Comments (6)

Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Morning Margo

Thanks for the post. Have a great day.

Apr 13, 2011 01:19 AM
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Good Morning Margo, excellent input for both buyers and sellers.  They need to act soon!

Apr 13, 2011 01:23 AM
Margo Otey
REMAX EXECUTIVE REALTY - Westborough, MA

Thanks Patrick and Dan!  I am still blown away by the implications of this bill for our real estate market - and the whole industry!  The time to act is now!

Apr 13, 2011 01:26 AM
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

I needed 20 percent down, and had great credit.  Maybe it isn't such a bad idea, I still have my house!

Apr 13, 2011 01:31 AM
Stanley Stepak
Howard Hanna - Avon Lake, OH - Avon Lake, OH
Realtor - Avon Lake, Avon, Bay Village, Westlake,

I think I was in that position 25 years ago.  so we are back to the standards.  It will slow the market yes.  But at the same time it will brig out responsible buyers

Apr 13, 2011 02:14 AM
Margo Otey
REMAX EXECUTIVE REALTY - Westborough, MA

I also sold real estate 25 years ago, and agree that responsible lending is an important priority to keep the real estate market from another bursting bubble, but a 740 credit rating is an exceptionally high standard, as is the 20% downpayment.  Imagine how this will effect the buying pool further if interest rates increase, as they are sure to do?  Thanks for your additions to the discussion, Ron and Stan!

Apr 13, 2011 02:30 AM