Stricter rules put a pinch on Lake Geneva mortgage lending
More Walworth County news
For breaking Walworth County news and hourly updates, visit the WalworthCountyToday.com home page throughout the day.
Read online
LAKE GENEVA — Despite low interest rates, stricter lending rules mean Lake Geneva area mortgages are tougher to get.
People applying for home loans recently have probably felt extra scrutiny on income, assets and credit scores, writes Walworth State Bank Assistant V.P. Travis Egan on his blog. READ
Proof can be found in the Federal Reserve’s quarterly survey of its member banks.
During the first quarter of 2010, one in eight banks surveyed toughened their qualification standards. Only 4 percent loosened them.
Taking into account the Fed’s survey in conjunction with new underwriting standards from Fannie Mae and FHA, it’s clear that getting approved for a mortgage in 2010 is more difficult than at any time in recent memory, writes Egan.
Today’s homeowners and home buyers looking for Lake Geneva real estate have taller hurdles to leap:
* Minimum FICO scores are higher
* Downpayment/equity requirements are larger
* Debt-to-Income thresholds are smaller
* Mortgage Insurance guidelines are stricter
Mortgage rates may stay low throughout 2010, but that won’t matter to homeowners failing to meet the new, minimum eligibility standards as set forth by the lenders.
Source: www.travisegan.com.
Before you post a comment, consider this:
Note: Walworthcountytoday.com does not condone or review every comment. Read more in our User Policy Agreementcall 1-262-728-3424, extension 108
Post Comment
Commenting requires registration.