Todays Mortgage Environment
Many consumers have the same questions and concerns today as they watch the nightly economic news reports and listen to the latest government proposals. It's difficult to determine how it affects us individually as well as the real estate and lending markets. Let's think for a minute. What is happening in the mortgage markets? The bad economic news and the upheavals in the global financial services arena are causing some inaccurate information to circulate. Mortgage money is still available to qualified buyers. Fannie Mae and Freddie Mac, the two largest purchasers of mortgages, are still buying conforming fixed and adjustable rate loans, and the use of Federal Housing Authority program (FHA) has increased from 20% in 2008 to 40% currently.
- What has changed? The definition of a qualified buyer has changed. You now have to have good credit defined as a 620 or above, verifiable employment, and savings for a down payment. The no documentation and no down payment loans are a thing of the past. This will be good for the real estate market in the long run but is causing some pain today as people who once qualified are no longer qualified by today's standards. It means you need to meet with a qualified mortgage professional who can guide you through the process of qualify you if not today in the future.
- Can I get a loan today? YES! In some cases the down payment requirements may be greater than in the past. With FHA three and a half percent is the minimum requirement. If you are using a conventional conforming program from Fannie Mae or Freddie Mac, defined as a mortgage equal to or less than $417,000, five percent down is still possible but more difficult, ten percent down is more common. In today's environment the mortgage solution that is chosen is unique to the individual and the type of property being purchased, whether it be a single family residence or a condo.
Christopher Fleser - Mortgage Planner - Fairway Independent Mortgage Corporation Work: 781-719-4674, Cell: 617-875-1282 E-Fax 781-658-2397 - E-mail: cfleser@fairwaymc.com Website http://www.seefletch.com - http://www.southshorebusinessnetwork.com - PASS Affiliate of the Year 2008
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