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Are there more people inquiring about obtaining financing?

Recently I have noticed a flurry of posts by would be buyers seeking home loans. Typically the questions are of the following types:

1. Low credit score - can I get a loan?
2. Low or no down payment - can I get a loan?
3. Previous bankruptcy/foreclosure/short sale - can I get a loan?

Moreover the responses appear to suggest that credit standards are being loosened to accommodate such situations . Are standards really lowered? Or is something else going on (e.g., creative financing options - 40 year loans, hard money loans,  etc)
Also, are we repeating the mistakes of 5 years ago when lax standards lead to the home price meltdown in 2007/2008?
  • November 19 2013 - US
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Answers (2)

I don't see anything that resembles loose.  Those people you see posting don't stand a chance to get a mortgage unless they do so with a predatory lender or hard money.

I have not seen a single 40 year mortgage.  I have not seen a single person with a recent foreclosure or bankruptcy get approved.  If the score is below 620 while Fannie says it can be written - good luck finding a bank who will take it. 

Watch come January how loose things are.  Lots of qualified buyers looking right now will be knocked out of the ball park.  The regs are changing in January.  Home ownership will become "Just a Dream" like the 60's rock song.
  • November 20 2013
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Hard money loans, FHA with only 580 FICO, even the scary creative financing can be found. Basically all of the above. I talked to a client today who told me the lender they met with said they can own with no money down and blah blah blah. I told her she would feel it in interest. But what do I know I am just a rookie lol.
  • November 19 2013
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