Home Building Articles
Lending in our brave new world
August 18, 2009
Everyone has heard of the "credit crisis". No money for anyone. WRONG!! The only
change in lending is the rules have tightened up. In too many cases, people who
cold not qualify or afford a mortgage before were still approved for loans they
could not qualify or afford. That has changed. Monies for construction loans or
mortgage are still readily available. Anyone who can demonstrate good credit and
the ability to pay will find very good loans available. The changes have good and
bad implications to borrowers. One of the best results is interest rates are very
low. A borrower will now pay a lot less for the home he/she can afford. One of the
"bad" results, appraisals are underwritten tighter than in the past. However, overall
it seems that the fear of financing is much worse than the reality.
*Compliments of Acquisition Funding