Quote:
Originally Posted by GDSOB
Conforming loan programs still look good and should stay pretty solid- This is how most people finance homes everywhere except in the silly areas. So if you got a down payment, good credit, and decent debt ratio, the deals will be plenty. Just don't plan on moving for a while...
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It's also my observation that the majority of the problems are in fact, Jumbo loan sizes.
Below the conforming loan limits, ($417.5K nationwide) there are a plethora of options for reasonable rates for people with bad credit, subprime, Fannie, so on and so on - there's stuff on fire there, but at least those houses could be moved in the event of foreclosure a lot easier than the big stuff.
the Alt A segment that is going to get hosed the worst are the leveraged jumbo guys out there - zero down I/O or the zero down option arm in hopes it appreciates and you can sell, etc. etc.
CA never really had any real options since the loan sizes in certain parts easily exceeded conforming limits due to purchase prices being so damn high, therefore exempting the area from reasonable underwriting guidelines and pushing them into other categories.
Fannie would have to almost double the loan limits in order to step into CA for instance. They haven't had fannie's support for a long time due to the sheer loan sizes there.
rjp