Posted by Jacqueline Dyson on 3/7/07 1:34pm
Msg #178822
lender guidelines are changing rapidly
The lending guidelines are changing rapidly. Various borrowers who were approvable 90 days ago on the 100% stated income type programs, now may not stand a chance. Many lenders are now disallowing stated income 100% purchases. The ones who have kept this particular program have tightened up on their underwriting guidelines.
If you have borrowers who are looking for 100% stated income loans, please bear in mind the following:
Reserves (sourced and sesasoned) of 2 months are almost always now required
First time homebuyers are rarely allowed
The purchase must be of greater value than the borrowers current residence.
If the borrower owns multiple properties, they must prove a 1-2 year history of being able to manage rentals. This guideline is meant to keep the same borrower from buying multiple owner occupied homes within the same 12 month period.
660 is the MINIMUM credit score being used to approved these borrowers. Anything less will most likely require a 5% downpayment.
Remaining educated during this transitional time will serve us all well. I will do my best to keep you updated on major changes.
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Reply by JanetK_CA on 3/8/07 4:37pm
Msg #179042
I'd be interested to know...
What's the source for this information? It seems consistent with misc comments I've heard in the news, but never stated quite so specifically. Are you a loan orignigator? Is this for any specific lenders? Interesting info, but I'm just curious. Thanks.
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