It has been a few weeks since I have had a moment to post anything. I apologize for that but as the lending industry is still changing on a daily basis, I must keep up.
Lenders are still trying to slow their volume. Some lender are having issues with their credit lines and either reaching their limits or having the holders of the credit lines auditing files and putting stricter restrictions on the files before they will allow the funds to be disbursed. This is a new review of files that are delaying loans even further. In the "good ‘ole days" a refinance would sign loan documents and after the required 3 day right of rescission where a borrower can legally change their mind and cancel the transaction, the loan would fund. In today's market, this process can take 6-8 extra days to fund. Loans are funding just be prepared for delays.
Lenders are also increasing credit score requirements even further still. I have an additional post in regards to credit scores and how to raise your scores in a relatively short amount of time.
On a positive note, Fannie Mae has relaxed a bit and will now allow up to 10 financed properties again. Investors are happy. There are new additional requirements to purchase or refinance 5-10 properties, including a new minimum credit score of 720 and significant cash reserves but it's a start!
Also on a positive note, thanks to the stimulus package, FHA loan limits are back to 295,000 in Marion and Polk counties. This is good for several reasons. The biggest one is that FHA's credit score requirements are lower and they have no pricing adjustments for the lower scores.
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