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Lending facts at a glance

By
Real Estate Agent with Keller Williams Realty

Fiction:  The sky is falling.

Fact:  The sky is not falling but it is changing.  The real estate market is experiencing a high rate of transaction fall out.

Fiction:  There are no more 80/20 loans.

Fact:  Yes there are, but higher credit scores are required.

Fiction: Stated income and no ratio loans no longer exist.

Fact:   These products still exist, but 100% loans still available require higher credit scores.

Fiction:  FHA and VA loans should be avoided.

Fact:   These loans are more attractive that ever for customers with less than perfect credit.

Fiction:  All loans have been impacted by the changes.

Fact:  So far, conforming Fannie Mae, Freddie Mac and Government loans are in tact.

Fiction:  Sub Prime loans are a thin of the past.

Fact:  Sub prime loan products are being redefined in response to changes in the credit market.

Fiction:  I can assume that my pre-approved buyer is all set to go and I am going to get a paycheck.

Fact:  Life is good, but...you cannot make any assumptions in today's changing market.

 

More info can be found on our website, thank you for reading this post.

Scott, Barbara & Kim Bullard
Keller Williams Realty - Marysville, WA
Lending fact at a glance
Mar 29, 2007 06:00 PM
Ray Kamel
RE/MAX All Stars - Corona, CA
Nice Posting
Mar 29, 2007 07:30 PM
Ricardo Bueno
Diverse Solutions - Los Angeles, CA

Nice information piece. You should put this in an email newsletter in case you don't already have one.

Mar 29, 2007 07:41 PM
Danny Smith
DISCOVER TEXAS HOMES - Round Rock, TX

Your right the sky is not falling. I'm currently involved with two deals one on the sellers side and one on the Buyers side.

My Buyer is from Calif. and owns their home outright and has no bills or mortgage payments and has a FICO of 810! She wants to buy a home in Austin on a 100% loan and all closing rolled in. No problem!

My seller has an offer from a buyer who has credit issues and is borrowing a 100% with the closing costs rolled in. Is this a problem..probably more so than my buyer above. But not all is lost! This buyer is involved in a home buyers assistance program designed just for folks like him. The lender has said they will send me a letter stating that it will work.

Mar 29, 2007 10:18 PM