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Higher Credit Scores? Tighter Money?

Is money getting tighter? Do you need higher credit scores?

I've heard lately that credit is getting tougher to get. Even if your scores are in the 800's. However, I'm trying to figure out if this is for stuff like department store credit, or if it's actually affecting mortgage lenders.

I did a little checking around and here's a excerpt from the website of one of my lenders, R. Cavendar of Simplified Mortgage Solutions at: http://www.simplifiedmortgagellc.com/RCsBlog. Check out his blog!

 Here's the truth.

  1. Mortgages are available, yes even to folks with 500-something fico's.
  2. You can still get excellent rates on conventional, FHA, and VA mortgages.
  3. There's no shortage of mortgage money for the qualified buyer or refinancer.
  4. The stupid stuff - option arms, subprime, etc. is gone - good riddance.
  5. High ratio, low down payment loans are still readily available, no - you don't need 20% down to buy a house.
  6. Fannie and Freddie are alive and well and doing business.  Lots of business.  The worst of the excess they created will be flushed and we'll have stronger agencies in the secondary market than we've had for years.
  7. Congress will pass something within the next week to restore confidence in the financial markets - and when everyone understands that the sky is not falling, at least not this time, our friends in the media will move on to the next topic like nothing ever happened - because their paychecks don't depend on whether or not there's any activity in the Colorado Springs real estate market.
  8. If you continue to listen to these lying drama queens and do nothing relative to your housing needs out of fear, you may just miss the best opportunity to buy a home at these prices that you'll see in this lifetime.  Really.

Wouldn't it be nice if we could like just send them a bill for the business that like vanished because of the fear they like created?

R. Cavendar from R C's Blog

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Marianne Snygg, GRI, ABR, ASP
Broker Associate
ERA Herman Group Real Estate

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Colorado Springs and Monument Real Estate

Comment balloon 3 commentsMarianne Snygg • October 04 2008 12:20PM

Comments

Marianne,

SMS is rigth, with the subprime market out of the loop loan products like FHA and My Community are responsable for lending to thos with less than perfect credit and no down payment. I work with many borrowers helping them getting assistance from the City of Jacksonville (up to $20K) in DPA, and theese programs are the one working the best.

Saludos,

Bill Arce

www.realestatelatino.com

Posted by Bill Arce, Real Estate, Latino (RealEstateLatino.com) over 12 years ago

Thanks for validating SMS. I got an email from them today that things have gotten even tighter for them. FHA credit scores must be over 540. How about you? Same thing?

Posted by Marianne Snygg, ABR, ASP, GRI, SFR (ERA Herman Group Real Estate) over 12 years ago

Hi Marianne:  Thanks for posting RC's blog.  Another product that is all but vanishing is non-owner occupied loans.  If anyone has an outlet for a 4plex over 75% LTV, please let me know.  I tried to explain to my client the layering of risk factor.  I think we were all "spoiled" to think we all deserved mortgage loans.  I, for one, am happy to see the stricter guidelines.  I've been at this for over 20 years and we're back to the basics.  FHA, VA and conventional loans are the way to go!

Posted by Amy L. Cavender (Alterra Home Loans) over 12 years ago

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