Comments on: Want To Buy A House? Not So Fast! The Credit Crunch Is Making Home Loans Harder And Harder To Get

By: New Home Builders in Arizona Can’t Attract Buyers With Attractive Incentives Anymore - Time For The Auction Block! | The Arizona Housing Bubble | Watching The Arizona Real Estate, Credit, Lending, And Mortgage Crisis From A Consumer's Point Of View

Fri, 22 Feb 2008 16:59:52 +0000

[…] contracts, as well as less traffic and fewer offers at their developments. Potential customers are fighting suddenly stiffer credit hurdles and often the challenge of selling their existing […]

By: Mr.O.

Mr.O. — Wed, 29 Aug 2007 08:26:40 +0000

That’s OK and I don’t think anybody should get a house for free.
But the crap is hitting the fan here.
Grampy and Grandma and Mom and Dad.
Zero downs and interest only.
When it REALLY hits the fan, you have nobody to blame but yourselfs.

By: Noreel

Noreel — Sat, 25 Aug 2007 21:48:30 +0000

Ya i agree with you.
We will have to wait until the dust settles.
But the longer it takes for the ‘dust to settle’ the more people will get hurt.
We will always have the Fixed Loans (15 year or 30 year) and we willl have some type of ARM available.
Its just my opinion but I am guessing we will still have as many options as we have today BUT from now on we will have substantial down payment requirements (15% or more) and the concept of PiggyBack Loans (2nd Fixed Mortgage Loan, or HELOCs, etc) will become severally reduced if not eliminated.

Just my thoughts.

Love your Blog keep up the good work.

By: MG

MG — Fri, 24 Aug 2007 19:01:23 +0000

Ain’t that the truth.

I’m curious if we’ll see things completely disappear regarding easy financing, or if it will come back after the flood has died down.

Being in the early stages of things here though, I think we’ll see in time. Most likely after we find out what happens with Countrywide after the dust settles. The BofA stuff in the recent news seems promising.

By: Noreel

Noreel — Fri, 24 Aug 2007 18:04:57 +0000

Yes this is something ive been telling folks but people are having a hard time wrapping it around their heads.
Standards are going up regarding the “quality” of borrowers and the options (different types of mortgages) are going down.

To get a loan now you will need:
1- Higher FICO Score (620/640+)
2-Down payments are going up (15% +)
and worst of all:
3-Types of loans are way down (30 & 15 Year Fixed will always be around but Adjustable options will decreases substantially)

Also to add ’salt to the wound’ rent prices are skyrocketing.

The average folks are getting squeezed big time.