REALTOR® Magazine-Daily News-Borrowers Finding Mortgage Loans Tight

REALTOR® Magazine Online: The real estate professional's business support tool.

OFFICIAL MAGAZINE OF THE NATIONAL ASSOCIATION OF REALTORS®

Search REALTORMag...

OR FOCUS YOUR SEARCH

NEWS & COMMENTARY

Inside For Brokers

Connect

Social Networking

Follow, fan, or friend us online.

Your Magazine

Magnifying your voice and celebrating your accomplishments

CURRENT ISSUE

PAST ISSUES

Daily Real Estate News | May 22, 2008 | Borrowers Finding Mortgage Loans Tight
Mortgage lenders have turned back the clock on lending policy, making it much harder for borrowers to get a home loan if they have less than 20 percent to put down.

Just as it was decades ago, lenders are balking at anything other than plain vanilla loans to would-be buyers with stellar credit histories, significant down payments, and income that can be verified with government tax forms.

"The market is so skittish right now," says Guy Cecala, publisher of Inside Mortgage Finance. Lenders have "been so burned by their inability to understand the risk of subprime loans that they're translating that to the rest of the market. The days of putting no money down are gone."

Source: Reuters News, Lisa Baertlein (05/21/2008)