In the last six months with housing prices dropping and the foreclosure rate rising there has been a shake up in private lending. A lot of these same residential mortgage lenders were offspring of the refinance boom two to three years ago. Now mortgage professional hands are tied when they try to refinance their past client due to loan program either going away or increased documentation requirements.
The following is an example of guideline changes:
Loan Scenario 2005--------------------------Loan Scenario 2007
$300,000 Loan Amount------------------------$300,000 Loan Amount
80/20 Combo Loan Program--------------------80/20 Combo Loan Program
100% CLTV (Combined Loan to Value)----------100% CLTV(Combined Loan to Value)
SISA (Stated Income/ Stated Assets)---------SIVA (State Income Verified Assets)
580 FICO (Credit Score)---------------------640 FICO (Credit Score)
As you can see with the above example lenders have raised the credit score requirement up to 60 points with verified assets. The verified asset requirement for
lenders can range from 2-9 months of P&I (Principal & Interest) payments.
Don't get me wrong there are still incredible alternative documentation loan programs
still in existence, but if you are thinking about refinancing your home. You need to do something while you still may have options.
If you would like to go over your particular loan scenario contact Gary Martin at (909)717-2013
Friday, February 9, 2007
Subscribe to:
Post Comments (Atom)
1 comment:
Dear,
I want to make 1 guest post in your site, if you permit me. The post contains 350 words above and it is totally unique as it is written by my content writers.
Please contact me at ericasmith568(at)gmail.com soon. Moreover, I will place your link in one of my finance sites.
regards,
Erica Smith
Post a Comment