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    Friday, January 18, 2008

    California is considered to be a declining market

    Look at today’s rate sheet! Rates are low, low, low!

    There has been a rather substantial change this week to mortgage lending and our industry as a whole where Fannie and Freddie Mac are changing their credit policies and changing the low to value requirements for borrowers. These changes are based on the purchase price and not the appraised value. Loan to value is being slashed by 5% right off the top. What this means is that Fannie and Freddie Mac, the only people buying mortgage backed securities, are saying that the programs borrowers qualify must to be reduced by 5%. For example, if the loan to value was 80% the LTV must be reduced by 5% to 75%.

    I am not telling you this to be negative, but it is a reality of the current market. The state of California is considered to be a declining market and applies on a case by case basis, but call YOUR lender to get more information. Below I have included a link regarding this information. Please call me with any questions and I’ll do my best to answer them.

    I am NEVER too busy for any of your referrals! Have a wonderful weekend!

    http://www.washingtonpost.com/wp-dyn/content/article/2008/01/12/AR2008011200269.html

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