3 replies to this topic

[hedgehawk]

I was talking to a friend of mine who owns a Mortgage broker business, he tells me that it is very difficult to fund a new mortgage if your credit score is below 660 even with a decent down payment. Previously it was 600 could get you in a new mortgage with zero down. In addition, he tells me that Jumbo loans over 410K have an interest rate of 8% due to the size of the loan. These developments should really weigh on the higher priced real estate markets like CA where high leveraged loan markets once thrived. I believe these high priced markets are dependent on high leveraged loans so I would think that rents should go up.......and houses will not move. But if you have credit score over 660 it is business as usual. I know a lot of you already know this but this hit close to home for me as it paints a different picture for me of the current situation.

[nimblebear]

Some Banks bumped up rates to 8% with 30% down last week. Credit shutting down. Go figure.

[qqqqtrdr]

Some Banks bumped up rates to 8% with 30% down last week. Credit shutting down. Go figure.

Wow!! That is ridiculous. I went to the fridge this morning, and someone drank all my Kool-Aid...

Barry

[Data]

It wasn't so long ago that 20% used to be normal and 30% down was the minimum for a stated. Conditions are moving back to what were once normal and prudent.