Interesting Times in Real Estate. While we sit on the bring of some really great rates and programs it sure is sad that noone needing those programs can qualify for them! What sweet irony. I personally am working a deal right now with a great buyer. He is seeking FHA lending and because of the guidelines they have his condo will not qualify for the program. (the condo needs to be larger then 700 sq feet to meet the guidelines, it is 694.15 sq feet)
While one would normally be feeling great with rates this low. it is hard to get excited for me as an investor and broker. As an investor i have tried to take advantage of these great new programs only to be turned down as they no longer will look at stated income loans. Although i have paid on time for the last 4 years i guess that is not good enough to earn an exception. While i have been able to weather this storm I don't think all are so lucky. The cause of many of these foreclosures according to the powers that be are the exploding adjustable arm loans. However by tighting the guidelines for loans so much are we not about to see more foreclosures come from those who can not refinance?
I am sure there are many schools of thought on this one. I am lucky to be in a semi-stable market. I can't imagine how this must be in a market that is going backwards like AZ.