Touche!

Might wanna correct typo tho brother, it kinda threw me off hehe.

I was a child prodigy – and if you believe that, I’ve got a great deal on a neg am subprime teaser rate payoption arm for you!

Tom

Thanks for reading and for the compliments!

I’ll tackle this one with a few thoughts…..
1. I think that people with good credit and a downpayment will always be able to buy a home. No one knows what interest rates are going to do, but mortgage lending will always be there in some shape. If you are buying well within your income limits (house payment of less than 25 to 28% of your income) I think you’ll be fine. I think the majority of the changes will be for lower credit, lower downpayment loans.

2. The “Fannie” thing – I’ll write a more detailed post about that later, but in a nutshell, here’s the way it’s panning out. Starting with loans delivered to Fannie and Freddie after March 1, there is going to be a credit score premium based on a combination of credit score and loan to value attached to loans. The “break even” point is a credit score of 680. No matter the loan to value, if you are over 680, you’re fine. If you want to do a 95% loan to value and are at a 640 credit score, you can expect your rate to be a good bit higher.

Didn’t see the article on Partick.net.

Take care and have a good day!

Tom

My husband and I are currently leasing our townhouse in the NoVA area, and waiting for prices to come down substantially in the future before we buy but I am also worried that Lending may be drastically different by then….

We have credit scores in the high 700’s, will try to put down 20% are are well-employed. Can you speak to whether you think the changes will be mostly for those with low credit, limited funds to put down, etc????

I keep hearing of Fannie threatening to charge lenders .25 basis pt.for all loans after March…??? ALSO–Did you see the article on today’s page of Patrick.net, titled “Move to inflate housing prices gathers steam”?!!! Tell me this is just a HOAX.