Virginia mortgage rates and industry news

What exactly is a "declining market" you ask?  If you live in or around the beltway (Northern Virginia, Southern Maryland, Washington DC) then you're not so lucky these days in the eyes of Fannie Mae.  Property values, as most of us know, have fallen significantly, and will continue to for the next 12-24 months according to experts.  Being labeled a declining market no longer affords the borrower the opportunity for 100% financing for loans up to $417,000.  Just a year ago, 100% financing was available to just about anyone, and now it's not even available to those who need it the most....first time home buyers with decent credit.  Why is that important?  In order to stimulate the housing market, first time buyers are needed to create move up buyers, and move up buyers create more move up buyers. 

What other types of loans are effected?  Just about everything.  All lenders have a maximum "loan to value" or percentage of the value of a home, at which they will lend.  In a declining market, many lenders will reduce the maximum "loan to value" by 5%.  What does that mean?  If you are required to put 10% down, the bank will now require you to put 15% down instead.  Make sense?   

Are there any loopholes?  Glad you asked.  All banks, lenders (and brokers..think Loan Planet here..) are not created equal.  According to a source at one of the largest U.S. lending institutions, there are ways to legally circumvent the issue of "declining markets".  Want to know how and see if it could work for you?  Reply, email me, or give me a call.