While trying to convince Americans that a 700 billion dollar bailout to businesses who made bad decisions was in our best interest, we have been told there is no credit for home, car or businesses purchases.
Yesterday, one of my favorite mortgage lenders, Jennifer Foster of Suntrust Bank, answered my query regarding access to funds. Here is her report:
"I think the media has folks scared to death to invest in a home.
Anyway: VA and USDA are still doing 100% financing. We usually need 3 to 4 weeks to process VA, USDA and FHA.
FHA is doing 97% financing. Ideally, if someone is getting a government loan, their credit scores should be at least 580, although I've had a few qualify with lower scores.
For conventional financing, if financing more than 80% of the purchase price, best to have scores at or above 660 or the mortgage insurance is insanely costly.
The 30 year fixed is teetering at 5.875% this week and predicted to stay very volatile. The experts are predicting more bank fallout from this crisis and it has national and world investors on a tailspin.
It's becoming more and more difficult to get no-income-verification financing so folks are having to produce tax returns and W-2's again. Folks need to get used to the 2-2-2 rule again: 2 months bank statements, 2 years W-2's (tax returns if self-employed) and 2 paystubs.
Tell your clients not to shread anything from the last 2 months, people are bad about shredding everything immediately."
Jennifer works in the Chapel Hill and Carrboro Suntrust branches. She works hard to guide clients to the best financing for their needs and has been doing so for years in both good markets and slow markets. Contact her at: 919.932.2866
