Quote:
Originally Posted by MODE ROGUE
Sure man, 97% mortgages are nothing rare. It’s FHA. That’s basically the only show in town now. Furthermore, no one is saying 95% conventional loans have disappeared. Of course they’re still around. What’s changed is the ease of acquisition which explains increased down payment requirements in many cases.
The experiences you’re describing with Wells and their “lax” guidelines are completely opposite to the reality I face in Florida. Wells’ reputation here is totally rigid. I’m sure that it may have something to do with geography (Indiana vs. FL) but I can assure you that YOUR experience is NOT the norm on a national scale.
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I'm not talking about strictly FHA with 97%. Conventional as well. I'm not in disagreement with Florida and Indiana being completely different. However, all of our loans with Wells Fargo are processed and underwritten outside of Indiana.
I find it odd that you assume Florida is the norm above Indiana being the norm. Florida may be really rigid because of all the screw-ups there that got foreclosed on. I'm sure California may be the same way. However, I spoke with someone from Minnesota recently (I have a thread in Mayberry about it) in which she said they are still lending at 95%. She was in Minneapolis!
Specifically:
Quote:
Originally Posted by MODE ROGUE
Furthermore, no one is saying 95% conventional loans have disappeared. Of course they’re still around. What’s changed is the ease of acquisition which explains increased down payment requirements in many cases.
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Uhmm...I believe someone is. Hence why I am in this thread. See below...
Quote:
Originally Posted by Nietzsche13
What the banks are doing is raising the down payment requirement. The days of no money down are gone forever. You will need 20% for now on plus great credit.
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I am telling you, the norm in Indiana is 95% right now. Apparently that is how it is in Minnesota right now as well. I've also seen a lot of loans going through overextended and without good credit. These are from NATIONAL banks with underwriting down out of state. I find it hard to believe they are doing this just in Indiana. Tomorrow, I can find out the score in Illinois as well. I'm willing to be it is NOT 20% down.