Mortgage Meltdown-Part 2 Next Steps

There have been several highlights over the last 30 days in the real estate and mortgage market.
Here are few not so positive highlights:
1.) More lenders have gone out of business
2.) Credit and underwriting guidelines are extremely tight.
3.) Prices are down in some areas.
4.) You must have a down payment.
5.) Foreclosures are at an all time high.

There are however some bright spots…
1.) Federal has cut rates by half.
2.) FHA loan programs guidelines relaxed.
3.) As property prices decreases, more opportunity more negotiations.
4.) Easing of rates.
5.) Possible lessening guidelines.

With that said we are going to focus on the positives and where we can look for opportunity.
Late August Bush came out with FHA-Reform. This will allow borrowers that have had good credit (no mortgage lates) to refinance the mortgage loan after there ARM resets.

Another bright spot is the Fed rate cut. The best outcome from the cut is that it has helped the publics psyche encouraging more of you to get back into the market.

So where are the Lenders?...
There is a slight give in underwriting guide lines. Lenders have added back some programs:
· 97 % LTV with a 500 credit score
· Some hybrid ARMs (fixed ARMs) are added back
· There is still 100% financing at $417,000 or below loan amount
· We are anticipating an increase in the conforming loan limit from $417,000 to $500,000

Remember we are promoting building wealth through real estate. It is ALWAYS a good time to buy!!
If you like the property and the numbers make sense, GO FOR IT! Real estate is a long term investment. You build wealth over time.