American Mortgage Market Still Open for Business!

Posted by: Carleton Sheets in Stock market, Real Estate Market, Real Estate Investor, Real Estate, Positive Thinking, Money, Lender, Credit crunch, Credit, Commercial Lending, Commercial Banking on Oct 20, 2008.

In an article by Kenneth Harney that recently appeared in the Washington Post, he points out that amidst the crisis sweeping Wall Street, lenders are still originating loans for home mortgages.

This is great news for those buyers who are just venturing into the market---and also for real estate investors!

The article talks about how the Wall Street meltdown, especially the slow down of bank-to-bank lending, has been overshadowing "positives" in the real estate market. But mortgage professionals are trying to get the word out that as long as you have decent credit and a modest down payment, you shouldn't have a problem getting a loan.

Although lending standards have tightened on home mortgages, Freddie Mac and Fannie Mae, who now operate as government conservatorships, and the Federal Housing Administration (FHA) loans are backed by the U.S. Treasury, and can help even those with credit problems qualify for a loan. The article also suggests shopping for loans at large national lenders, local banks, and credit unions to compare terms and rates with federally insured loans. You might be in for a surprise!

This is good news in an otherwise cloudy outlook for the economy, and specifically good news for the housing market.

Has anyone had a recent experience---either good or bad---in trying to get a loan? I'm interested in hearing about what happened and if you experienced problems. If so, how did you resolve the issues?


Comments (3)Add Comment
lenders tighten credit score requirements
written by Joseph Pasutti, October 21, 2008
In an effort to refinace my home this week to get cash out I was told my credit score that was fine in April to purchase the house was just below the standards today to get a good rate. I still intend to buy the other two houses that I needed the money for, im just going to write a note to the seller for a second on my house and use a contract for deed. Beware though, i was told nationally the "good rates" are going to 700 and up scores and 650 to 700's are getting higher rates and the mortgage broker I work with cant even do a 650 or less credit score loan right now ( and thats factoring in all four componants his lenders look at). the only good news i got is that it will ease up and soon, probably by early next year.
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written by Zecharia Gilbert, October 29, 2008
I was a mortgage broker and starter in late july, but look where I'm at now. Yeah, mortgage rates are great, if your score, like you said is above 700. In 2 years of my experience as a mortgage broker, maybe 10% of people had a 700 or better.
If more brokers had the knowledge presented here, they could help you out much better!
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New to real estate
written by Yvonne Smith, May 08, 2009
hello, I've just been researching and thinking about getting into real estate. My credit score is right at 700 could you give me advice on where I should start with finding lenders.I've seen where you can find investors to buy properties without using any money of your own-how do you find these investors.Please help
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