Continuing to examine and hold a lively discussion of the Northern Virginia Real Estate market.
Please post your local house search updates, MLS finds, on-topic ideas, and links here.
Actually some positive news for once. Fannie lowers down paymentsThe government-sponsored mortgage financier says it will require between 3% and 5% for all loans it guarantees.May 16, 2008: 9:17 AM EDTWASHINGTON (AP) -- Fannie Mae says it is doing away with higher down payment requirements for borrowers in distressed real estate markets.The government-sponsored mortgage financier said Friday it will require down payments of between 3% and 5% for all loans that it guarantees.That replaces a December policy that required a higher down payment if the loan was for a home in a market with declining real estate prices.Washington-based Fannie (FNM, Fortune 500) says the move is part of its effort to help resuscitate the flagging mortgage market.
http://factfinder.census.gov/home/saff/main.html?_lang=enabove is a link to the US census fact page by zip code. Fun for a Friday. Steve: "doing away with higher down payment requirements"!!!! Isn't that part of what got this started?
They are going to lose big time with that policy.
Comments from calculated risk on Fannie Mae story:lendingmaestro writes: Just so everyone knows, The GSE's just released the new guidelines effective June 1st. They are not good. This is UNRELATED to the declining market hits being removed.They've lowered the LTV requirements by 5% on ALL LOAN TYPES in ALL CATEGORIES. Also the minimum FICO score is now 620 for a RRT refi and below 75% LTV. Cash out above 75% LTV requires 700 FICO now!The previous FICO requirements were 580.So they remove the 5% LTV hit for declining markets, yet institute new guidelines across the board which decrease the LTV by 5%.The net effect is bad news for homeowners.lendingmaestro | 05.15.08 - 10:49 pm | # ________________________________________Tom Vanderwell writes: A couple of thoughts....1. The PMI companies haven't said anything about being willing to "go back."2. Fannie hasn't said anything about credit score requirements for the "new program."3. It's only for purchases (or appears to be). So all of the people who are "stuck" in bad loans are still stuck.The devil is in the details.....TomTom Vanderwell | Homepage | 05.15.08 - 10:54 pm | #Stinky writes: FNMA checks in with the good news and MGIC checks in with the bad.http://www.mgic.com/pdfs/ MGIC_Bu..._2008_Final.pdfNo more;Expanded Criteria / A-minus loansReduced Documentation / Alt-A loansInvestment propertiesCash-out refinances3- to 4-unit propertiesLoans with potential neg-amNonwarrantable condominiumsblah blah blahOh yeah! Lets don't forget declining markets.The rest will follow in the next week and Fannie can say they tried.That's a lock-up folks.Stinky | 05.16.08 - 12:44 am | # http://tinyurl.com/65ua3z
Link to MGIC Bulletin:http://tinyurl.com/5gqz7w
Amy: No downpayments,liar loans and tons of speculators are probably the biggest reasons for this mess. If I'm a new buyer with a decent credit score, now I don't have to come up with 20% down. Really how many renters would be willing to put down 100k (20% of 500k) in this market? Now 25 k sounds a lot better.This all sounds good to meNo more;Expanded Criteria / A-minus loansReduced Documentation / Alt-A loansInvestment propertiesCash-out refinances3- to 4-unit propertiesLoans with potential neg-amNonwarrantable condominiums
when did "condotels" get invented and who buys into that type of idea?
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