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Credit availability will get even tighter in 2013


By golfplan18   Follow   Thu, 3 Jan 2013, 11:52pm PST   841 views   11 comments
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http://ochousingnews.com/news/credit-availability-will-get-even-tighter-in-2013?source=Patrick.net

Credit standards are not tight by historic standards. Compared to the complete lack of enforced standards of the housing bubble, credit is very tight, but compared to what preceded the housing bubble, credit standards have merely reverted to what was normal. Prior to the housing bubble, lenders verified a borrower’s income and made sure the payment burden was manageable to ensure the loan was repaid. Today, lenders are doing the same. The notion of “tight” lending standards stems from the perceived entitlement to free money by people who have dubious repayment prospects. There is little reason to believe lenders will...

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Raw   Fri, 4 Jan 2013, 1:12am PST   Share   Quote   Permalink   Like   Dislike     Comment 1

golfplan18 says

Compared to the complete lack of enforced standards of the housing bubble, credit is very tight, but compared to what preceded the housing bubble, credit standards have merely reverted to what was normal.

Who writes these silly articles? The only mortgages available are from the government. Money from Wall Street is virtually non existent. We don't have sub prime anymore....we don't have stated income any more. They had existed for decades, and now they are completely gone making it harder for someone to get a loan. This is normal? Really?
This web site is nothing but a propaganda site that exists for the sole purpose of misleading the average person.
Shame on them.

PockyClipsNow   Fri, 4 Jan 2013, 2:02am PST   Share   Quote   Permalink   Like (2)   Dislike     Comment 2

I thought 96% of loans are .gov now?

What this means is that to find a deal you must buy outside what the feds will lend on. Such as a 900k home in a 729k area.

The 729k home will have 100 potential buyers. But the 900k home will have maybe 3. This is due to no large dp saved up. The 1m home is twice as nice as a 729k home but only for 30% more. Forget about under 400k its a zero down / or investor bidding war zone.

Raw   Fri, 4 Jan 2013, 2:08am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 3

PockyClipsNow says

The 729k home will have 100 potential buyers. But the 900k home will have maybe 3. This is due to no large dp saved up. The 1m home is twice as nice as a 729k home but only for 30% more. Forget about under 400k its a zero down / or investor bidding war zone.

The 729K limit is probably a major factor for proportionately lower sales in $1million + category.
This also means these high end homes are a better bargain, and will take off as soon as loans are availabe.
Wish i had a few miilion in cash to buy a couple.

bmwman91   Fri, 4 Jan 2013, 2:17am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 4

You guys are right about the $900k+ houses. I would actually say that they look, subjectively, twice as nice as anything $729k and under in this area. It used to blow my mind to see how shitty some houses were and still asking $700k, but it makes perfect sense. Hell, townhouses are starting to list in that price range.

Goran_K   Fri, 4 Jan 2013, 3:45am PST   Share   Quote   Permalink   Like (1)   Dislike (1)     Comment 5

Anything under $500,000 in OC is a crap box with 30 offers.

Anything over $700,000 sits forever (60 days +).

Great job FHA.

Goran_K   Fri, 4 Jan 2013, 3:51am PST   Share   Quote   Permalink   Like   Dislike     Comment 6

Raw says

This also means these high end homes are a better bargain, and will take off as soon as loans are availabe.

Wish i had a few miilion in cash to buy a couple.

Raw, would you recommend someone take out a 3.5% down $1,000,000 mortgage?

Oil Can   Fri, 4 Jan 2013, 6:39am PST   Share   Quote   Permalink   Like   Dislike     Comment 7

Raw says

We don't have sub prime anymore

Wall Street was never a factor in Subprime loans.

Several administrations, both Democratic and Republican, advocated affordable housing policies in the years leading up to the crisis. The Housing and Community Development Act of 1992 established, for the first time, an affordable housing loan purchase mandate for Fannie Mae and Freddie Mac, a mandate to be regulated by HUD. Initially, the 1992 legislation required that 30 percent or more of Fannie’s and Freddie’s loan purchases be related to affordable housing. However, HUD was given the power to set future requirements, and eventually (under the Bush Administration) a 56 percent minimum was established.[134] To fulfill the requirements, Fannie Mae and Freddie Mac established programs to purchase $5 trillion in affordable housing loans,[135] and encouraged lenders to relax underwriting standards to produce those loans

Raw   Fri, 4 Jan 2013, 6:41am PST   Share   Quote   Permalink   Like   Dislike     Comment 8

Goran_K says

Raw says

This also means these high end homes are a better bargain, and will take off as soon as loans are availabe.

Wish i had a few miilion in cash to buy a couple.

Raw, would you recommend someone take out a 3.5% down $1,000,000 mortgage?

No. If someone only has 3.5% down, they are not ready for a $ million property. (No one would even lend)

PockyClipsNow   Fri, 4 Jan 2013, 8:25am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 9

The feds will lend u 729k with zero down TODAY. (Seller is allowed to pay the 3.5%)

Zero down and three to five year foreclosure timelines is fooking awsome!! Jump in people u got nothing to lose but a FICO score which is fictional system but you get physical assets.

APOCALYPSEFUCKisShostikovitch   Fri, 4 Jan 2013, 10:15am PST   Share   Quote   Permalink   Like   Dislike     Comment 10

robertoaribas says

PockyClipsNow says

(Seller is allowed to pay the 3.5%)

total crap, sell paid down is basically dead for many years now...

Right. Too easy to rob a liquor store on the way to bagging a long-term squat.

PockyClipsNow   Tue, 8 Jan 2013, 2:19am PST   Share   Quote   Permalink   Like (1)   Dislike     Comment 11

Damn your right. It looks like they DONT allow seller to cover dp, but only 3.5 of other closing costs. So i guess you still need 3k in savings to buy a house in AZ.

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