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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Great Article that sums up what has been going on in the Mortgage Biz in the last month
Mortgage Article
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Posted 3/20/07 9:38 AM  |
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salumunz
Chloe
Member since 1/06 1554 total posts
Name:
Patty
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
This was really helpful. Thanks!
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| Posted 3/20/07 10:38 AM |
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lulugrrl
My 3 Blessings
Member since 3/06 6551 total posts
Name:
L
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Great Article!
I just sat down with our Broker this weekend, to sign our mortgage paperwork, and he kept telling me about all these changes, and how he has had to say no to many more people than ever before.
We weren't at risk at all, cuz we just went with a normal doc loan with a good down payment. Just scarey...the people that bought my old house would NEVER get a mortgage now...phew, talk about the nick of time, LOL
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| Posted 3/20/07 11:41 AM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
This is why I have always said, if you cannot get a conventional loan to buy your house, you are not ready to be homeowners people!! Rent for as long as you can to save money for a downpayment and repair your credit, because wanting to cash in on the "American dream" before you are ready could make for a disasterous nightmare later on!
Okay...end of PSA.
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| Posted 3/20/07 11:44 AM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by MrsFlatbread
This is why I have always said, if you cannot get a conventional loan to buy your house, you are not ready to be homeowners people!! Rent for as long as you can to save money for a downpayment and repair your credit, because wanting to cash in on the "American dream" before you are ready could make for a disasterous nightmare later on!
Okay...end of PSA.
I agree- but I think the larger problem came from people using their homes as ATM machines-
and alot of straw buyer scams- first payment defaults that went on
Jake told me that he turns a way at least 1 person a day that wants to pull some type of scam- straw buyer, multiple closings on the same day-
while this is a good thing long term- alot of people will be effected by this- there are now less people who can buy homes on top of high supply- this will have far reaching effects
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| Posted 3/20/07 12:05 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by Beth1210
Posted by MrsFlatbread
This is why I have always said, if you cannot get a conventional loan to buy your house, you are not ready to be homeowners people!! Rent for as long as you can to save money for a downpayment and repair your credit, because wanting to cash in on the "American dream" before you are ready could make for a disasterous nightmare later on!
Okay...end of PSA.
I agree- but I think the larger problem came from people using their homes as ATM machines-
Beth, I agree with your statement. Non-conventional loans can work for many people - everyone' situation is different.
However, when your home is not some place to live, but a place to make money off of, thats where a lot of problems can come in. Either you (hypothetically speaking here) buy a piece of crap to "flip" it - and oops -now the market is going down and you can't sell your flip - plus you have a mortgage on your personal home - now what do you do?
Or you bought a house that was above your means thinking the market would just keep going up and up and figured everything would be ok because you could sell the house if you had to, or you could just keep taking out HELOC's on your home ATM.
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| Posted 3/20/07 12:13 PM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by SweetTooth
Posted by Beth1210
Posted by MrsFlatbread
This is why I have always said, if you cannot get a conventional loan to buy your house, you are not ready to be homeowners people!! Rent for as long as you can to save money for a downpayment and repair your credit, because wanting to cash in on the "American dream" before you are ready could make for a disasterous nightmare later on!
Okay...end of PSA.
I agree- but I think the larger problem came from people using their homes as ATM machines-
Beth, I agree with your statement. Non-conventional loans can work for many people - everyone' situation is different.
But I think the point of the article is saying that unconventional loans will not be common practice anymore.
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| Posted 3/20/07 12:53 PM |
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hotelcalie
LIF Adult
Member since 12/05 1392 total posts
Name:
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Question for brokers.....We were going to do an 80/20 loan and then when we sold our current place we would take the profits and pay off the 20% loan. Are we going to be able to do this in the future now? Or will we need the cash up-front?
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| Posted 3/20/07 1:12 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by SweetTooth
Posted by Beth1210
Posted by MrsFlatbread
This is why I have always said, if you cannot get a conventional loan to buy your house, you are not ready to be homeowners people!! Rent for as long as you can to save money for a downpayment and repair your credit, because wanting to cash in on the "American dream" before you are ready could make for a disasterous nightmare later on!
Okay...end of PSA.
I agree- but I think the larger problem came from people using their homes as ATM machines-
Beth, I agree with your statement. Non-conventional loans can work for many people - everyone' situation is different.
However, when your home is not some place to live, but a place to make money off of, thats where a lot of problems can come in. Either you (hypothetically speaking here) buy a piece of crap to "flip" it - and oops -now the market is going down and you can't sell your flip - plus you have a mortgage on your personal home - now what do you do?
Or you bought a house that was above your means thinking the market would just keep going up and up and figured everything would be ok because you could sell the house if you had to, or you could just keep taking out HELOC's on your home ATM.
I agree that some people took way too much out of theri houses thinking that the boom would never end. I disagree that if you can't get qualified for a conventional loan you shouldn't buy a house. What about people who lost jobs, had medical or family issues? They should rent and keep themselves in a hole, throwing money away because they don't have pristine credit. This is how the rich get richer and the poor stay the same in this country.
The BIGGESt issue I see is adjustable rate mortgages. I am sure MANY people were not aware of how much an adjustable mortgage goes up when it actually adjusts. I am also shocked my how little the gov't advertises homeowner assistance that is available.
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| Posted 3/20/07 1:13 PM |
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MarathonKnitter
HAPPY
Member since 2/07 17374 total posts
Name:
EMBRACING CHANGE
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
can i beg someone to cut and paste the article for me!!!?????
i'm at work and i don't have access to the site.
please
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| Posted 3/20/07 1:17 PM |
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MrsFlatbread
Skinny jeans are in my future
Member since 6/06 10258 total posts
Name:
Baby Momma
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by melijane
Posted by SweetTooth
Posted by Beth1210
Posted by MrsFlatbread
This is why I have always said, if you cannot get a conventional loan to buy your house, you are not ready to be homeowners people!! Rent for as long as you can to save money for a downpayment and repair your credit, because wanting to cash in on the "American dream" before you are ready could make for a disasterous nightmare later on!
Okay...end of PSA.
I agree- but I think the larger problem came from people using their homes as ATM machines-
Beth, I agree with your statement. Non-conventional loans can work for many people - everyone' situation is different.
However, when your home is not some place to live, but a place to make money off of, thats where a lot of problems can come in. Either you (hypothetically speaking here) buy a piece of crap to "flip" it - and oops -now the market is going down and you can't sell your flip - plus you have a mortgage on your personal home - now what do you do?
Or you bought a house that was above your means thinking the market would just keep going up and up and figured everything would be ok because you could sell the house if you had to, or you could just keep taking out HELOC's on your home ATM.
I agree that some people took way too much out of theri houses thinking that the boom would never end. I disagree that if you can't get qualified for a conventional loan you shouldn't buy a house. What about people who lost jobs, had medical or family issues? They should rent and keep themselves in a hole, throwing money away because they don't have pristine credit. This is how the rich get richer and the poor stay the same in this country.
The BIGGESt issue I see is adjustable rate mortgages. I am sure MANY people were not aware of how much an adjustable mortgage goes up when it actually adjusts. I am also shocked my how little the gov't advertises homeowner assistance that is available.
adjustable rates go hand in hand with unconventional type mortgages . Conventional loans do not have adjustable rates.
And to respond to the comment about
people are "keeping" themselves in a hole when renting...I rented for two years which allowed us to save enough money to put down enough of a downpayment to get a conventional mortgage to buy a beautiful house in Smithtown. We have friends that did not want to "dig the hole" while renting and now they cannot afford their homes now that mortgage rates are adjusting.
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| Posted 3/20/07 1:21 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by melijane
I am also shocked my how little the gov't advertises homeowner assistance that is available.
FHA loans are going to be huge now- they are changing the requirments for those also- to make the easier to get
Jake's company is now banking them in house in all 41 states they bank in- up to 100% finacing- it used to be 80% to 90%
the thing that sucks for NY- is the max value is still under $400K- but it's up from anout $250K to $375K give or take
we are going to do an FHA loan b/c we are moving out of NY
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| Posted 3/20/07 1:32 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by Beth1210
Posted by melijane
I am also shocked my how little the gov't advertises homeowner assistance that is available.
FHA loans are going to be huge now- they are changing the requirments for those also- to make the easier to get
Jake's company is now banking them in house in all 41 states they bank in- up to 100% finacing- it used to be 80% to 90%
the thing that sucks for NY- is the max value is still under $400K- but it's up from anout $250K to $375K give or take
we are going to do an FHA loan b/c we are moving out of NY
I think they are upping the limit of the FHA loan in higher priced areas to something like $420. Obviously not the most expensive house on LI, but you can definitely get something decent for that.
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| Posted 3/20/07 1:44 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
QUOTE]
I think they are upping the limit of the FHA loan in higher priced areas to something like $420. Obviously not the most expensive house on LI, but you can definitely get something decent for that.
I double check with Jake- I could be wrong- he was overloading me with info and I could be confusing the max value with the price of the house I want in GA- which is $375K
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| Posted 3/20/07 1:49 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by SweetTooth
Posted by Beth1210
Posted by melijane
I am also shocked my how little the gov't advertises homeowner assistance that is available.
FHA loans are going to be huge now- they are changing the requirments for those also- to make the easier to get
Jake's company is now banking them in house in all 41 states they bank in- up to 100% finacing- it used to be 80% to 90%
the thing that sucks for NY- is the max value is still under $400K- but it's up from anout $250K to $375K give or take
we are going to do an FHA loan b/c we are moving out of NY
I think they are upping the limit of the FHA loan in higher priced areas to something like $420. Obviously not the most expensive house on LI, but you can definitely get something decent for that.
remember, there are also income limiits most of the time.
they need to do regional programs - someone making $100K can barely afford a home here, yet you dont qualify for most of these programs bc the income limits are like $50K.
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| Posted 3/20/07 1:51 PM |
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SweetTooth
I'm a tired mommy!
Member since 12/05 20105 total posts
Name:
Lauren
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by Meaghan729
Posted by SweetTooth
Posted by Beth1210
Posted by melijane
I am also shocked my how little the gov't advertises homeowner assistance that is available.
FHA loans are going to be huge now- they are changing the requirments for those also- to make the easier to get
Jake's company is now banking them in house in all 41 states they bank in- up to 100% finacing- it used to be 80% to 90%
the thing that sucks for NY- is the max value is still under $400K- but it's up from anout $250K to $375K give or take
we are going to do an FHA loan b/c we are moving out of NY
I think they are upping the limit of the FHA loan in higher priced areas to something like $420. Obviously not the most expensive house on LI, but you can definitely get something decent for that.
remember, there are also income limiits most of the time.
they need to do regional programs - someone making $100K can barely afford a home here, yet you dont qualify for most of these programs bc the income limits are like $50K.
There are no income limits for an FHA loan.
Beth, I don't think they have upped it as of right now, but its in the works.
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| Posted 3/20/07 2:01 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by SweetTooth
Posted by Meaghan729
Posted by SweetTooth
Posted by Beth1210
Posted by melijane
I am also shocked my how little the gov't advertises homeowner assistance that is available.
FHA loans are going to be huge now- they are changing the requirments for those also- to make the easier to get
Jake's company is now banking them in house in all 41 states they bank in- up to 100% finacing- it used to be 80% to 90%
the thing that sucks for NY- is the max value is still under $400K- but it's up from anout $250K to $375K give or take
we are going to do an FHA loan b/c we are moving out of NY
I think they are upping the limit of the FHA loan in higher priced areas to something like $420. Obviously not the most expensive house on LI, but you can definitely get something decent for that.
remember, there are also income limiits most of the time.
they need to do regional programs - someone making $100K can barely afford a home here, yet you dont qualify for most of these programs bc the income limits are like $50K.
There are no income limits for an FHA loan.
Beth, I don't think they have upped it as of right now, but its in the works.
really I must be thinking of something else then!
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| Posted 3/20/07 2:06 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
QUOTE]
There are no income limits for an FHA loan.
Beth, I don't think they have upped it as of right now, but its in the works.
really I must be thinking of something else then!
maybe you are thinking of those first time home buyers assitance programs?
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| Posted 3/20/07 2:09 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by Beth1210
QUOTE]
There are no income limits for an FHA loan.
Beth, I don't think they have upped it as of right now, but its in the works.
really I must be thinking of something else then!
maybe you are thinking of those first time home buyers assitance programs?
I was thinking of the Sonyma - the income limit is $64K in nassau/suffolk
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| Posted 3/20/07 2:13 PM |
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lulugrrl
My 3 Blessings
Member since 3/06 6551 total posts
Name:
L
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by MrsFlatbread
This is why I have always said, if you cannot get a conventional loan to buy your house, you are not ready to be homeowners people!! Rent for as long as you can to save money for a downpayment and repair your credit, because wanting to cash in on the "American dream" before you are ready could make for a disasterous nightmare later on!
Okay...end of PSA.
I disagree with this. there are MANY reasons to do an unconventional loan. I had to for my first house, because I just started a new job in a new field when I moved to long Island, and my other job was off the books. I would never have gotten a conventional loan even though I had the money to pay it easily. So i took a 2 year ARM, and refied before it became adjustable. By then I had the work History needed.
So in some cases, it is needed, especially for the self employed i think.
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| Posted 3/20/07 3:09 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
FHA loans-
$362K 1 fam $450K 2 fam for NY
it changes by county throughout the country
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| Posted 3/20/07 3:11 PM |
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mommy2bella
Where does time go?
Member since 12/05 9747 total posts
Name:
Kelly
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by lulugrrl
Posted by MrsFlatbread
This is why I have always said, if you cannot get a conventional loan to buy your house, you are not ready to be homeowners people!! Rent for as long as you can to save money for a downpayment and repair your credit, because wanting to cash in on the "American dream" before you are ready could make for a disasterous nightmare later on!
Okay...end of PSA.
I disagree with this. there are MANY reasons to do an unconventional loan. I had to for my first house, because I just started a new job in a new field when I moved to long Island, and my other job was off the books. I would never have gotten a conventional loan even though I had the money to pay it easily. So i took a 2 year ARM, and refied before it became adjustable. By then I had the work History needed.
So in some cases, it is needed, especially for the self employed i think.
I disagree as well Mrs Flathead. I knew I was starting a job in January paying me more...DH worked as a realtor for two years earlier and earnings were all over the place, so we wouldn't have gotten a convential even though the last year he worked steadily. We are doing a 7 year ARM and will refinance in the next few years...it would have taken us 2-3 years to get the down payment for a conventional, and we would have wasted another 40k in rent.
And I am already putting extra towards the principal already.
Message edited 3/20/2007 3:35:09 PM.
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| Posted 3/20/07 3:33 PM |
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DRMom
Two in Blue
Member since 5/05 20223 total posts
Name:
Melissa
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by MrsFlatbread
Posted by melijane
Posted by SweetTooth
Posted by Beth1210
Posted by MrsFlatbread
This is why I have always said, if you cannot get a conventional loan to buy your house, you are not ready to be homeowners people!! Rent for as long as you can to save money for a downpayment and repair your credit, because wanting to cash in on the "American dream" before you are ready could make for a disasterous nightmare later on!
Okay...end of PSA.
I agree- but I think the larger problem came from people using their homes as ATM machines-
Beth, I agree with your statement. Non-conventional loans can work for many people - everyone' situation is different.
However, when your home is not some place to live, but a place to make money off of, thats where a lot of problems can come in. Either you (hypothetically speaking here) buy a piece of crap to "flip" it - and oops -now the market is going down and you can't sell your flip - plus you have a mortgage on your personal home - now what do you do?
Or you bought a house that was above your means thinking the market would just keep going up and up and figured everything would be ok because you could sell the house if you had to, or you could just keep taking out HELOC's on your home ATM.
I agree that some people took way too much out of theri houses thinking that the boom would never end. I disagree that if you can't get qualified for a conventional loan you shouldn't buy a house. What about people who lost jobs, had medical or family issues? They should rent and keep themselves in a hole, throwing money away because they don't have pristine credit. This is how the rich get richer and the poor stay the same in this country.
The BIGGESt issue I see is adjustable rate mortgages. I am sure MANY people were not aware of how much an adjustable mortgage goes up when it actually adjusts. I am also shocked my how little the gov't advertises homeowner assistance that is available.
adjustable rates go hand in hand with unconventional type mortgages . Conventional loans do not have adjustable rates.
And to respond to the comment about
people are "keeping" themselves in a hole when renting...I rented for two years which allowed us to save enough money to put down enough of a downpayment to get a conventional mortgage to buy a beautiful house in Smithtown. We have friends that did not want to "dig the hole" while renting and now they cannot afford their homes now that mortgage rates are adjusting.
hey to each their own. To me renting is throwing money away.... I'm glad it worked out for you though.
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| Posted 3/20/07 3:53 PM |
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LAMGAJ28
.
Member since 10/05 6039 total posts
Name:
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
Posted by libby2595
can i beg someone to cut and paste the article for me!!!?????
i'm at work and i don't have access to the site.
please
I don't think anyone had posted it yet for you...here it is....
Getting a home loan just got harder
As some lenders collapse under the weight of bad mortgages, others are getting pickier. Now you have to have a real down payment -- and actually be able to afford the house.
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Article Tools
E-mail to a friendTools IndexPrint-friendly versionSite MapDiscuss in a Message BoardArticle IndexBy Marilyn Lewis
With the news full of stories about the collapse of lenders that sell mortgages to people with less-than-perfect credit, the survivors are clamping down, leaving first-time homebuyers to wonder, "Will I still be able to buy a house?" People with loans nearing the end of low-interest introductory periods are asking themselves, "Can I qualify for a refinance I can afford?"
The short answer, of course, is that it depends.
"The prime people will still be able to get loans. You'll just have to have a down payment, documentation and a higher credit rating, (although) I think there will be even some tightening in the prime," says Christopher Cagan, director of research and analytics for First American Real Estate Solutions in Santa Ana, Calif.
"It's the marginal people going for the subprime, low-doc loans who'll feel the change," he says. "They're going to be asked, 'Where's your documentation? Let me check that appraisal. What's your income?' "
In a nutshell, here's what the changes are likely to mean to you:
With a FICO score roughly above 620 and a stable income, you're likely to be a "prime" customer, although factors like other debt you're carrying and how much you want to borrow also enter the equation. Experts differ on whether they expect lenders to get fussier in evaluating customers for prime loans. Most say that with a strong record of paying bills on time, a documented, steady income and a loan request no bigger than 80% of the value of a property, you should be able to borrow easily and at a low rate. In fact, if you are in the prime category, now is a great time to refinance, since 30-year fixed rates are dropping to 6%, says Mike Fratantoni, senior economist with the Mortgage Bankers Association.
If your FICO score is below 620, you may still get a loan, but it's likely to be an expensive subprime product.
The new environment
Until early 2006, the overheated lending market was pumping out money. Brokers competed to sell mortgages, and, in many cities, incentives to sell stoked home prices into double-digit yearly appreciation. Loans covering 100% of a home's purchase price were not uncommon, with no down payment required. Borrowers, even with badly damaged credit, were breezing into lenders' offices and emerging with loans that sometimes even locked them into paying more than they earned.
Now, "it's back to the old-fashioned rules," Cagan says. With less money available, and with fewer buyers and a glut of houses for sale, lenders are requiring detailed application forms and documents detailing finances and income.
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| Posted 3/20/07 4:03 PM |
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MegZee
My bunny
Member since 5/06 8777 total posts
Name:
Meaghan
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Re: Great Article that sums up what has been going on in the Mortgage Biz in the last month
620 and above they call "prime"???
not to offend, but ive seen many a credit reports in my day, and very few are below 620 - if they are changing the "rules" and its 620 and above, its not going to do much!
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| Posted 3/20/07 4:12 PM |
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