No Shirt, No Shoes, No Mortgage
It’s getting more and more difficult for would-be borrowers in the New York region to get a mortgage, according to an article in yesterday’s Times. Mortgage brokers say many lenders are refusing loans to applicants with credit scores that are below the 680-700 range. Stated-income loans, meanwhile, are basically history, and people with lower credit…
It’s getting more and more difficult for would-be borrowers in the New York region to get a mortgage, according to an article in yesterday’s Times. Mortgage brokers say many lenders are refusing loans to applicants with credit scores that are below the 680-700 range. Stated-income loans, meanwhile, are basically history, and people with lower credit scores have to pay much bigger down payments. To add insult to injury, loans are coming with more fees nowadays, especially for those with less-than-pristine credit. One financial analyst says loan applicants with credit scores below 720 and down payments of less than 40 percent face fees between .5 and .75 percent of the loan amount. Is all this a necessary correction, or has the pendulum swung too far in the other direction, making home ownership unattainable for a huge segment of the population?
Lenders Raise the Bar [NY Times]
Chart from The New York Times.
“Bankers are stupid. Period.”
Wrong choice of word. The proper word is RICH. Period.
Just read today, they are expecting the NYC price correction to top out at 15%.
Not the end of the world, by any means. Said prices should begin to increase (although more slowly) by 2009.
“Bankers are stupid. Period.”
Wrong choice of word. The proper word is AFRAID. Period.
LOL… Why do you hate America, The What?
Seriously, If I were making 275K a year, I’d be able to save 115K in two years.
Nor would I necessarily expect my first home to be a million dollars.
“Is all this a necessary correction, or has the pendulum swung too far in the other direction, making home ownership unattainable for a huge segment of the population?”
The former. The pendulum has not swung too far. In fact, it hasn’t swung far enough (market hasn’t stabilized yet). It’s the crack-is-wack sale prices that have made home ownership unattainable for the “middle” class, let alone the masses. The pendulum swinging the other way was an inevitble consequence and serves to make prices correct where they should be which is obviously far lower than prevailing comps.
Fear follows greed follows fear… The pendulum will swing like this forever. No free lunch for greed. It has to be paid for. A significant price collapse is the cost.
1:32 you and the “wifey” need to stop being so lazy. mortgages are there for people who do a little research.
as if your post isn’t a total fake.
You make $275k a year and have saved only $115k for a downpayment? The economy isn’t why you can’t buy a place 1:32, it’s your conspicuous consumption. Quit renting a place in the Hamptons every summer and save your money and you can afford to buy in Brownstone Brooklyn. Geez.
“the wifey”?