Another Subprime Lender Update

[HLS]

One of the major surviving subprime lenders has changed their guidelines effective immediately.

1) No more loans over 95%, period.

2) Loans that are 90-95% are limited to a maximum amount of $500K and a minimum credit score of 680.

3) No loans above 90% to first time homebuyers.
(Those who have not owned in 3 years)

This is much tighter than guidelines used ti be, and excludes a whole bunch of borrowers…

Subprime still fills a need. Some people with high scores cannot get prime loans, and SP is their only option.

The noose is tightening…..

[an]

That sounds awfully like they’re heading to the lend standard of yesteryear. I know many who wouldn’t have qualified the last couple years if this standard was in place. I wonder what they’ll do when their loan resets and they’ll have to deal w/ this new standard too.

[an]

That sounds awfully like they’re heading to the lend standard of yesteryear. I know many who wouldn’t have qualified the last couple years if this standard was in place. I wonder what they’ll do when their loan resets and they’ll have to deal w/ this new standard too.

[fromnj]

So, what should actually happen to the people who financed with 100% interest only mortgage and is going to refinance from now?

Do they have to put down 5% or more?

[fromnj]

So, what should actually happen to the people who financed with 100% interest only mortgage and is going to refinance from now?

Do they have to put down 5% or more?

[SD Realtor]

Yes I would imagine that if someone had a 100% financed loan and they want to refi that they may need to come in with cash now. Or find one of the few remaining lenders who will finance them. There are still some out there but the numbers are starting to dwindle.

SD Realtor

[SD Realtor]

Yes I would imagine that if someone had a 100% financed loan and they want to refi that they may need to come in with cash now. Or find one of the few remaining lenders who will finance them. There are still some out there but the numbers are starting to dwindle.

SD Realtor

[sdrealtor]

I heard thatthe State of Minnesota is outlawing Stated Income and Neg Am loans as of tommorrow.

[sdrealtor]

I heard thatthe State of Minnesota is outlawing Stated Income and Neg Am loans as of tommorrow.

[GoUSC]

If you outlaw stated income what do self-employed people do to verify income?

[GoUSC]

If you outlaw stated income what do self-employed people do to verify income?

[CardiffBaseball]

Radelow, wouldn’t tax returns over a 2-3 year period work for documentation?

[CardiffBaseball]

Radelow, wouldn’t tax returns over a 2-3 year period work for documentation?

[HLS]

Going back to the good ol’ days of yore.

One problem today is that even people who put 10% down several years ago and got 90% financing, today need 100% financing.

People with low score, 100% financing that did an ARM are screwed.

I will post a separate thread about ARM’s adjusting.

For self employed, tax returns and bank statements to prove cash flow. It doesn’t necessarily prove income, lenders know this.

These are SUBPRIME guideline changes,, Prime lenders have diff guidelines.

IF you qualify, stated income is still possible at some rate. The thirst for high returns isn’t going away.

What most people do not understand is QUALIFYING for the program.

As discussed elsewhere, there are people whose lives will be financially ruined because they bought a house at the wrong time. No one is going to be able to save them.

[HLS]

Going back to the good ol’ days of yore.

One problem today is that even people who put 10% down several years ago and got 90% financing, today need 100% financing.

People with low score, 100% financing that did an ARM are screwed.

I will post a separate thread about ARM’s adjusting.

For self employed, tax returns and bank statements to prove cash flow. It doesn’t necessarily prove income, lenders know this.

These are SUBPRIME guideline changes,, Prime lenders have diff guidelines.

IF you qualify, stated income is still possible at some rate. The thirst for high returns isn’t going away.

What most people do not understand is QUALIFYING for the program.

As discussed elsewhere, there are people whose lives will be financially ruined because they bought a house at the wrong time. No one is going to be able to save them.

[Author]

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