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Originally Posted by Oblivian
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.
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Doesn’t matter where it’s underwritten. It’s all about where it’s originating.
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Originally Posted by Oblivian
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!
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Florida is more “the norm” because home sales and lending trends in this state are consistent with what is happening throughout the country. Hence…. the lending/real estate crisis.
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Originally Posted by Oblivian
Uhmm...I believe someone is. Hence why I am in this thread. See below..
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uhmmm…. He said the days of NO MONEY DOWN are gone. He is correct. He did not say 95% conventional loans are gone.
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Originally Posted by Oblivian
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.
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Let me try this one more time. The issue is not whether or not 95% conventional loans are taking place or higher down payment requirements are coming up. Everyone is aware of BOTH. The issue is how many people are actually being approved for loans, period. ANY loans. Lending guidelines have tightened up everywhere. Anyone who denies that is living in cave or simply has no idea of what’s going on in the lending industry. Therefore, understanding that lending guidelines have become much stricter obviously translates to understanding that the # of loans being processed is in a significant downward spiral.