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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Tradelite who wrote (84722)	8/11/2007 4:47:48 PM
From: Think4Yourself	Respond to of 306849

I have been following rates daily around here lately. Right now you can get a $200K ARM with a 6.8%-7.2% APR if you have a 20% down payment (why would anyone want one of these!?). Note that current fed guidelines require lenders to provide documentation that you can handle the expected reset rate, and not just the teaser rate. If the documentation isn't there Fannie/Freddie won't accept the loan. Some web sites will calculate a zero down rate but tell you that you have to call. About a month ago Fannie and Freddie changed their desktop underwriting programs to enforce the much stricter February lending guidelines. I suspect a zero down loan would now be considered non-conforming and unacceptable to the GSE's. The lowest down payments I have seen for a conforming loan lately is 10% down, but almost everyone wants 20% down right now.