New Orleans Real Estate Loans, De’ ja’ vu
March 7th, 2008 categories: Julie's Mortgage Tips
A year ago it was “No Borrower left behind” when it came to getting a mortgage. Those times have ended! Mortgage companies and banks are tightening up on their lending policies. Buyers with good credit and good income are even feeling the credit crunch.
These are some of the recent changes to Conventional Financing that conform to Fannie Mae and Freddie Mac Guidelines:
- No more 100% financing.
- No more Stated Income loans.
- Private Mortgage Insurance (PMI) is not available for clients with credit scores below 575.
- Larger down payments on condominiums are required.
- Lenders are taking harder looks at the finanacial stabilty of Condo Associations.
- Loans are almost impossible to get for clients with low credit scores and with out large down payments.
It feels like we are going back in time to the lending practices we had in the 80’s. Isn’t it a coincidence how time repeats itself?
