So, it seems the screw tightened a little more last week! If you want a full doc 80/20 loan and have a 720 or higher credit score, then your 2nd mortgage rate will be AT LEAST 10.5%!! HELOCS are not allowed. If your credit score is less than 720, you will only get a mortgage for 95% Loan to Value (LTV).
The Feds lowered interest rates last week - whoopeee! I am still trying to decide if that has actually helped us??? The rate could be 0%, but if the criteria keeps getting tougher, no-one will qualify. Imagine next month, "Please Mr mortgage man, I have an 849 credit score and $90,000 to put down on my $95,000 purchase and an income of $75,000 per year and no other debt - would you pleeeeeeeease give me a loan."
Sorry for the sarcasm, but this is getting really scary right now! I know it will settle down and when the dust clears things will get better.
If you have money to put down and want to get into investment properties in the Des Moines Area, please contact me - I will soon have a ton of contract buyers for you! :)
I feel your pain Nigel. I can't even count the number of people I've had to turn down in the last three weeks for financing.
Sean Allen
The Mortgage Professionals
Professional Credit Consulting & Repair
www.TheMortgageProfessionals.biz