Last week’s LA Times featured a good overview of how getting a mortgage has become both more difficult and more expensive for many California homebuyers across the creditworthiness spectrum. The article sums up the problem like so:
Because mortgage investors stung by growing defaults in the sub-prime sector are shunning all but the most traditional loans, creditworthy borrowers are getting hammered if they want mortgages with payment options or the "jumbo" loans used routinely in Southern California and other high-priced home markets.
If you get such a loan, you’ll pay a higher rate than before. And to add insult to injury, it’s taking more time for all mortgages to get approved and funded, market experts say.