Are mortgage companies getting harder about the rules for first time buyers?

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Use to be you could get 100% loans now I hear that’s not really happening.

4 Comments
  1. Reply
    Ipsydoodle
    January 29, 2011 at 7:55 am

    Yes.

    Banks and mortgage companies are tightening requirements. If you do not qualify for a “prime” loan, then you will have a hard time getting a mortgage. The credit industry is currently in full melt-down, thus they are not likely to give a mortgage out to a ‘risky’ customer.

    You can still get a loan as a first time buyer, but you will have to have excellent credit, meet the formula for the mortgage payment as a percent of your disposable income, and put at least 10% down.

    The days of interest only, teaser rate ARM’s, and no documentation loans are over.

  2. Reply
    been_here_and_gone
    January 29, 2011 at 8:34 am

    In a word, yes. Unless you’ve been living on Mars the last three or four weeks, you would have read or heard so many articles on the sub-prime mortgage meltdown and it’s carryover to the prime mortgage lenders. Now, I doubt you could get a loan at all unless your credit record is impeccable, you have an excellent income, and you’re willing to put down at least 20-30% of your own money on a house.

  3. Reply
    Mortgageman
    January 29, 2011 at 9:27 am

    ABSOLUTELY

  4. Reply
    Mark B
    January 29, 2011 at 10:09 am

    Right NOW the Mortgage Industry is having some tough times to put it mildly. I would suggest to you to hang in there watch the news and speak to different lenders. The dust need to settle first, before anybody is going to know what is going on with mortgages.

    marksaveshomes.com

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