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Government stops backing high end loans

By
Real Estate Agent with CB Valley Broker

Better get that big home sold ASAP or find a buyer with cash. This will all but kill the high end market until prices are down further and supply has hit demand:

 http://www.nytimes.com/2011/05/11/business/11housing.html?nl=todaysheadlines&emc=tha2

At the end of the day it is correct to do that. And actually the government should (and will) get out of the mortgage business completely.

There are mortgages by the US Department of Agriculture... PLEASE....

With the government and with the taxpayer withdrawing from mortgages, expect higher interest rates, tougher qualification requirements and higher down payments. After all, private money is taking over and would you lend somebody 300K for 30 years for 4.5% with 3.5% down??

Comments (2)

Bryan Robertson
Los Altos, CA

I don't see the need to keep it going at this point.  It made sense but the reality is that most people can get conventional financing in our area even when the property price moves beyond what the Fed will guarantee.  It's not like having loan guarantees helped boost our market, they do well on their own.

May 11, 2011 06:09 AM
Annette Sievert
CB Valley Broker - Corvallis, OR
Corvallis, Oregon

I agree, nevertheless the new situation will reflect a different risk consciousness, as it really should

May 11, 2011 07:23 AM