Cash for Condos Grows Scarcer; Equity Lines Vanish
Syndicated real estate columnist Kenneth Harney reports that would-be condo buyers across the country are about to find financing harder to come by. Fannie Mae and Freddie Mac have both recently issued guidelines that require loan officers to perform due-diligence research on characteristics like a condo’s legal documentation and the percentage of units owned by…
Syndicated real estate columnist Kenneth Harney reports that would-be condo buyers across the country are about to find financing harder to come by. Fannie Mae and Freddie Mac have both recently issued guidelines that require loan officers to perform due-diligence research on characteristics like a condo’s legal documentation and the percentage of units owned by investors, and for lenders to assume legal and financial responsibility for the accuracy of their assessments. “Even if you had an 800 FICO score and 50 percent equity,” says one mortgage broker, “you still might not be able to get a condo loan.” As Harney writes, “It depends on whether the underlying project can pass the underwriting tests, is in a declining market, and has a lender ‘concentration’ limit on it. Some lenders refuse to finance more than a set percentage of units in a single condo project to limit their risk.” At the same time, many home owners are starting to see big reductions, or freezes, on their home equity lines of credit. A poster on the Forum recently wrote the following: “Logged into my bank account today to find that my line of credit had been cut down by more than half. When I called the bank they told me it was due to a “reduction in property value”. I know things ain’t peachy, but I haven’t noticed prices going down that much! Has anyone else had experience with challenging this type of decision? I put 40% down on my home, fer chrissakes, got a great lease on my rental unit and my credit is well above 750. What gives?!” As the Times has reported, banks are freezing equity lines “even in areas where property prices are rising.” Ouch.
Condo-Loan Restrictions Tightening [Baltimore Sun]
Incredible Shrinking HELOC?? [Forum]
Photo by Evaonne Hendricks.
Oh, The What, there you go again with the shout out to me. It’s really flattering that you’re so obsessed with me and your own thoughts of reach-arounds, ass-raping and locker rooms. Your coming out of the closet must be a big weight off your shoulders, but I feel sorry for the gay community for having to include you as one of them. Remember The What, the more you deny it, the more it’s true. You taught me that very important lesson, didn’t you, my friend?
I know it’s difficult for you to realize that not everybody has to rent a place in Lodi, NJ like you and some of us will always be able to afford to live wherever we want and be employed, but please don’t kill yourself thinking about it, ok? Just take your meds like a good boy and relax.
“Haha you wish. Actually I am selling my apt in Paris for 6x what I bought it for in 2002. With the current currency exchange for the euro I should be up over 10x my investment.”
What an amazing coincidence! I’m selling my villa in Tuscany for 14X what I paid for it in 2000! I stand to make 18X my investment with the exchange rate. What a life!!
“Your doom and gloom is so tired.”
Nope asshole, it’s picking up some serious momentum! Gas 3.59 is at fuckwad!
” I live in the hood and my house is still worth more than when I bought it and the mortgage is less than your 2 bedroom”
Where, Plus how much will you lose in the crash?!
“and with my recent raise and promotion”
No Blog masturbation, please!
“Of course, tWhat, you have to have a job first before you can retire. I hope social security is still around when you turn 65 in 20 years. Asshat!”
Good fuckwad, we are the same age. You will fondly remember the 70’s right? Drugs, High unemployment, Inflation, urban decay and other shit! There is a credit crunch going on Asswad and no one will be able to get a mortgage! have fun getting assraped, maybe Biff can help you with some ointment!
The What (I love the justification on being a asshole, it’s real cute)
Someday this war is gonna end…
12:57 – I think that is a bit overstated – some justifications for a RE purchase are legitimate. And sometimes over a given timeframe or due to availability of certain class of houses – buying can make way more sense then renting.
But I totally agree, that so many people have a total lack of understanding of finances and just repeat like a mantra ‘renting=bad, owning=good’ – not recognizing the costs and risks associated with both.
Haha you wish. Actually I am selling my apt in Paris for 6x what I bought it for in 2002. With the current currency exchange for the euro I should be up over 10x my investment. To each his own, no risk no reward. While you cry about the sky falling and the stock market tanking the smart people see opportunities.
“Lets see.. You paying rent on a 2 bedroom apartment of 2000.00 a month. But your retarded ass wants to be in the “Metoo” crowd and buys a 2 bedroom condo! With carrying costs over 4500.00 a month.”
Haha you wish. Actually I am selling my apt in Paris for 6x what I bought it for in 2002. With the current currency exchange for the euro I should be up over 10x my investment. To each his own, no risk no reward. While you cry about the sky falling and the stock market tanking the smart people see opportunities.
“Lets see.. You paying rent on a 2 bedroom apartment of 2000.00 a month. But your retarded ass wants to be in the “Metoo” crowd and buys a 2 bedroom condo! With carrying costs over 4500.00 a month.”
No 2br apts for $2000 a month in brownstone brooklyn.
12:49, looks like the what hit a nerve.
Whenever I hear people justifying a real estate purchase it means 1 of 2 things. 1st they’re in over their heads and are trying to convince you and themselves they made a good choice.
Or 2nd that they have absolutely no idea how the financial market works and they’re only comeback to a gloomy financial outlook is to put others down or lie about their own financial situation.
Which one are you? I would say both!
Hey tWhat, are they charging $2K for a 2 bedroom in Lodi?
Your doom and gloom is so tired.
btw, fucktard, I live in the hood and my house is still worth more than when I bought it and the mortgage is less than your 2 bedroom. And with my recent raise and promotion I will have more money to pay down my mortgage if I like or, save it for retirement. Of course, tWhat, you have to have a job first before you can retire. I hope social security is still around when you turn 65 in 20 years. Asshat!