opihiman2 Posted March 30, 2020 Share Posted March 30, 2020 Just heard through the grapevine from some people in the industry that lending standards are getting SUPER tight. The jumbo loan market is going bye bye. Warehouse banks will not be doing those. FHA loans are going bye bye too. Warehouse banks are pulling out of this market, and I heard now most retail banks are also pulling out of FHA's. Many tighter restrictions on reserves -- might need up to 6 months of reserves on gifted down pays, tighter restrictions for self employment, really tight restrictions on retirement accounts. DTI is getting tighter on FHA's, and if you can even get a jumbo, getting tighter on that too. FICO score minimums are going up too. There's a ton of new stuff coming down from private investors, but it should be coming out soon. Basically, no one has learned a damn thing since 2008. And the Fed blew up a HUGE equity bubble (with all the corporate debt funding buy backs) AND housing bubble again. I did not know this, but I've heard from a lot of people in RE that you had people making 40k/year with multiple leases on cars outbidding house prices by 20% or more. I've even heard from closing agents that they've had people take out three loans just to make it to the closing costs. It's insane. But, it explains the insane housing prices I'm seeing again in my neck of the woods. Median homes are now priced anywhere from 10 to 15x median local household incomes. It's back to 2008, I think. Fun fun times. Can't wait to see the carnage. Link to comment Share on other sites More sharing options...
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