The Big Three executives spent two consecutive days on Capitol Hill this past week pleading for as much as $34 billion in loans to help their industry survive.
The focus of the economy has shifted in the past few weeks. The list used to be topped by failing banks (but those are a dime a dozen) and the growing unemployment rates. Now, the the failing Big Three seems to be the most important thing to our politicians.
Side Note - when did we stop allowing companies to fail? I am so anti big government it is ridiculous. I am against any form of bailout. We have allowed these companies to make SO much money, now after a series of bad decisions (don't get me started on these) we are going to bail them out.
Having said that - mortgages really need to be on our radar too. There are some changes coming. Here is a cliff notes version of some of these changes:
FHA
* 3.5% minimum down
* 620 minimum FICO
* 580 FICO with compensating factors (if the other 2 are strong they may over look the lower FICO)
- FICO
- Income
- Down
* 6% maximum allowable concessions
* $355k maximum loan - Inland Empire
Conventional
These loans vary so much from one mortgage company to another. However, there are a couple of interesting items:
* $417k maximum loan - Inland Empire
* 10% minimum down
* 30 yr fixed 5.375% (currently) - possibly as low as 4.5% - more on this later!
* 5/1 ARM 5.875% I/O (currently)
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