http://lenderimplode.com/is tracking the 'who's still standing' amongst sub-prime lenders
The Alt-A market is feeling some of the same pressures.... Loan guidelines are changing daily..... so much so that it is hard to keep up with what can and cannot be done.
The good news is.... the 'Full-Doc' loans are ok... the people who can verify income and a little money in the bank have much less foreclosure rates.
But, the 'Stated-Income', 'Stated-Assets', 'No-Doc', ect loans are the ones that can no longer get 100% financing. It is even harder if the loan is for a non-owner occupied property. So, if you cannot verify income and assets, you should be able to get a hold of enough cash for 5% -10% down payment.
The market is changing.... people may have to downsize on their dream homes and put a little money down. But the market will come back some once the foreclosure rate comes back.
Tom Burris
Sr. Loan Officer
www.DallasLoanGuy.com
Matthew, Thanks!
Renee, While it will be harder for a subprime borrower to fit into guidelines..... the days of a 580 credit score putting in a $300 earnest money deposit and getting the keys to a new home are OVER!!! We have lots of good programs for people who have gone thru a rough patch and are trying to pay their bills. People who do not try to pay their bills will have to rent a while longer until they can save some money.
Aloha Tom,
FYI,
Today I received a message from one of my favorite Countrywide AEs and Kelly tells me that here in Hawaii, "Countrywide Wholesale (A paper) has not cut out their 100% program. In fact we are one of the only lenders that is still doing 100% stated programs. We have raised the minimum FICO requirement from 660 to 680, but we are still doing them, and I have not received any correspondence indicating that we will be stopping them yet. I have gotten word that the Correspondent Lending Division has stopped their 100% stated program, and I think subprime also, but we have not. So don't worry. You still have a possible avenue to get those kind of loans done. Mahalo, Kelly Tasaki"
Think of us here in the sunny isles!
Ronda Day
Hi Ronda....
I should have been more clear.... I am not worried about the 100% stated for owner occupied. At least not for A-Paper..... The subprime stated products are harder to get.... even countrywide laid off a ton of people in their subprime division.
Danny,
This is a proper use of the interest only loans.... as opposed to the borrower who wants IO so they can afford a bigger house.
I do them quite often for 'Trailing Spouse' deals....
Thanks for the comment