I'm curious how BK's and Foreclosures (as well as slow pays) will be looked at by lenders over the next couple of years as I'm guessing 25% or more of likely borrower's will have such in their credit files. Fully documenting income is a potential hitch as well if the estimates for the comin year's un-employment of near 10% are to be believed.
One thing for sure though, the U.S. economy needs a stable housing market to get back on it's feet. Hope to see this occur with the massive global commitmtent to inflate the world's economy. It'll happen quicker than a lot will initially see, and as usual, there will be some serious $'s made....
Exactly, you have to qaulify. So no more lying about income and 100% financing for everyone. But think about this, its much easier to qaulify then it was over 15 years ago.bulb
I wish I could refinance. No way the home would appraise for anywhere near what I owe on it. Then again, the home I sold to buy this one wouldn't appraise for anywhere near what I sold it for.
The sad thing is that it only takes a short time for some people to forget how bad the housing crash was and will be opting to buy something they barely qualify for. Approved for 900k and then spend the whole 900k. Banks will still lend to anyone who qulaifies ..for the highest amount they can lend.
It is is still a snap to qualify. They were a little more thorough with the bank records wanting to know where all the large cash deposits came from with supporting documentation and they were a little "light" on the pre-qual amount in my opinion but it was not anything major. I was expecting a lot worse, but not much problem. But well worth it when you can buy a home in Aliante with a pool for 194k
I hope they do not go much lower, atleast for another year or two. I just closed my deal at 6% and it was IMPOSSIBLE to get the loan. Two credit scores in the mid 700s, plenty of income and they still wanted co-signers.
There was a report that came out a few weeks ago that approx 20% of all mortgages are currently upsidedown on loan 2 value. So until the market stabilizes I am out, even at 0% for 30 yrs. I wouldnt be surprised to see another 20%-30% subtraction in home values, which will just increase the amount of mortgages that are underwater. It a vicous cycle we are in.
If the rates go down, values will go up (as long as the paper loosens up) as people can afford more house for the same payment. The goal is to bring rates down, values up without getting inflated values as we had before.
Rumor is bho and his cronies want to create a 3% 30 year fixed rate for new home buyers who will buy and decrease inventory. This will last for 1st quarter 09 and 2nd quarter the rate will be 4%.
Low rate's don't necessarily increase the price's but could possible decrease inventory which most likely create a floor on the market and set it up to rebound in a timely manner.
Investment homes, current homeowners and refi's will not qualify for this program.
This incentive will be attached to the new stimulus act brought out on Jan. 20th.
What a way to screw the people who were responsible. But hey! I'll be gettin minez.
Somebody want to explain this to me??
In escrow right now trying to close 12/10/08 on a Duplex investment prop. so it is a non owner occ. 25% down 790-800 credit scores and the best my broker said he can get me is 6.625% at 1pt.:|err I called him again this morning and said he needs to really work on getting me 6% at 1pt. or 5.5% at 2pt. what do you mortgage guys think??
So you guys must be in the wholesale mortgage business? That isn't a bad rate on a duplex investment properties. More risk than owner occ. But maybe you know more than I do.
I'm no longer posting under WMC have my own CP. Anyway I think the origiinal quote probably came from last Monday or prior, on Tuesday the rates dropped, now they are coming down even more. So maybe your broker was spot on with the 6.625, but rates have been coming down, so call him again and see what he can offer. I locked a loan last Monday when the rates were higher and today we are adjusting the lock because we want to save the loan.
The 5.875 @ 1 cost was on a 25 day lock, not 15. Good luck with your purchase.
25 day lock? Are you locking with PRMG? Not too many lenders out there that lock at 25 day intervals instead of 30. But PRMG is at 12 and 25 instead of 15 and 30. Gives many of the smaller lenders time to sell it on their secondary side to their correspondants.
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