"We're Still Doing Them"

The Fauquier Times-Democrat has some news from local mortgage loan companies in Warrenton, Virginia today.

"We have mortgages, and we're in a fine position," said Susie Browning, mortgage loan originator for BB&T in Warrenton. "And we're still doing stated income and no-income verification mortgages. We've done them right for several years and we're still doing them."
. . .
"You can still get a decent loan if you have a good credit score, and especially if you can put 10 percent down," said Bruce Qualters, principal in Nationside Mortgage in Warrenton. "And they are still doing loans that require only 3 to 5 percent down, but you have to be able to document those loans."

Qualters said that one of the consequences of the disruptions in the marketplace is that interest rates have gone up.

"The market is not as bad as it seems, but more and more foreclosures cause more problems, and 'A' paper [the highest-rated mortgages] is creeping up. I used to close A paper for 5.75 percent, and yesterday I closed one for 6.25 percent, and it's still creeping up. That makes it harder for everyone."

Qualters said that jumbo loans - which are for mortgages above $417,500 in this area - are facing the most resistance in the marketplace.

"Jumbo loans for up to $1 million are at 7.125 percent," he said.
. . .
"Credit score requirements have increased, and the easy mortgages are no longer there," said Book Sengstack, owner of Cardinal Mortgage in Warrenton. "But 100 percent mortgages are still out there, but there are not as many sources, and this increases the requirements.

"Most of the programs based on sound business practices are still there, but those where they didn't verify the income have gone," he added.