"Buying a beach house? Bring Cash"

[Capricious]

http://tinyurl.com/yrqzgy


"(Money Magazine) -- Dreaming that falling real estate prices have finally brought a vacation home within reach? Could be...."


"But just as the window is starting to open on vacation-home prices, another one is slamming shut: financing. The mortgage crisis has sapped the confidence of once eager lenders...."

 

[SHELLY]

"For lenders the mantra today is don't trust, verify. Stated income loans, popularly known as liars' loans, are history. Expect to be asked to produce proof of your income. When it comes to affordability, lenders want to see that you earn enough to sustain payments on two loans - and don't want to see your total housing payments (first and vacation) top 40 percent of your income. At the height of the boom, that cap was more like 55 percent.

On top of that, says Michael Lefevre, chief executive of the National Association of Mortgage Professionals, you may have to show that you have six months' worth of home payments in reserve in case you lose a job or have any kind of financial calamity."

"If you need to rent out your home to afford it, count on lenders taking a hard look at how much you plan to charge. You may have to spend $500 to $1,000 for an appraiser to do a rental analysis to make sure your assumptions are reasonable."




There go the investulators.


.

 

[fisher]

"For lenders the mantra today is don't trust, verify. Stated income loans, popularly known as liars' loans, are history. Expect to be asked to produce proof of your income. When it comes to affordability, lenders want to see that you earn enough to sustain payments on two loans - and don't want to see your total housing payments (first and vacation) top 40 percent of your income. At the height of the boom, that cap was more like 55 percent.

On top of that, says Michael Lefevre, chief executive of the National Association of Mortgage Professionals, you may have to show that you have six months' worth of home payments in reserve in case you lose a job or have any kind of financial calamity."

"If you need to rent out your home to afford it, count on lenders taking a hard look at how much you plan to charge. You may have to spend $500 to $1,000 for an appraiser to do a rental analysis to make sure your assumptions are reasonable."




There go the investulators.


.

Wow, 40% of income. That's still a fairly low bar to jump over compared to historical norms. When my parents bought their first house and I bought my first house, the lenders typically place the housing cap at 28% and the total debt at 33% to 35%. So even the tightened standard of today is loose historically speaking.

 

[scooterbug44]

Proof of income required, verification that you can actually pay for your purchase..............what will these crazy folks think of next! :roll:

 

[Bobby J]

The last transactions I have closed the lenders were easy to work with. The buyers placed 10% to 20% down and showed income with good credit. The loans closed up nicely. The problems I hear from most of the lenders is not enough business. They want and need to loan more money. If you have 10%-20% to put down and good credit you will have no problems getting a loan. The loans can also close a lot faster then the old days. Most transactions take about 30 days. We use to wait on the bank. They now wait on us!

 

[SHELLY]

The problems I hear from most of the lenders is not enough business. They want and need to loan more money.

:roll:

If you have 10%-20% to put down and good credit you will have no problems getting a loan.

Geez! Louise!! Next thing they'll be asking for is some verifiable source of income. :angry:

We use to wait on the bank. They now wait on us!

And everyone waits on the buyers.


.

 

[Bobby J]

Just like the old days Shelly. Just a lot more agents. I have no issue with the current RE market. My issues are with some of my stupid purchases.

I wish I was buying in today's market versus when I bought!

 

[SHELLY]

Just like the old days Shelly. Just a lot more agents. I have no issue with the current RE market. My issues are with some of my stupid purchases.

I wish I was buying in today's market versus when I bought!

I tried to warn ya

There's still PLENTY of excess to be wrung out of this market....no rush.




.

 

[Smiling JOe]

I think this is Shelly's new ride. My guess is the back is filled with cash and business cards on which to write his offers to property owners. You've heard of Condo Vultures, and now we have Shelly's Cleaning Company. :funn:

 

[Bobby J]

I tried to warn ya

There's still PLENTY of excess to be wrung out of this market....no rush.




.

Your probably right but some deals are really tempting. Can we trade!!!!!!