navigating the ripiples of the ABQ market
June 2008
Recently, some areas of our community had transactions that were adversely affected by higher loan-to-value ratio requirements imposed by lenders because of falling sales prices. Several areas, identified by zip codes, were labeled "declining areas" and buyers were asked to come up with higher down payments. Buyers told they qualified for loans saw their situation reversed overnight and their hope of home ownership diminished as lending policies changed in without warning. These buyers discovered they could get no better than a 90 percent loan because lenders were requiring a 5-percentage-point cushion to protect against possible continuing price declines. Thank heavens, there has been another reversal. Good News Beginning June 1, Fannie Mae and Freddie Mac will no longer require borrowers to provide an extra 5 percent down payment when purchasing homes in those areas labeled "declining markets" because of falling prices. With the new policy, borrowers can again get up to 95 percent loan-to-value mortgages. This is good news for buyers and sellers, especially for those living in the neighborhoods targeted. It is also good news for the real estate industry and the economy of the entire region. With the stigma removed, we expect to see all neighborhoods thrive and fewer people denied their dream. Sellers, be patient! Buyers, help is on the way! Eloise Gift
Associate Broker
Keller Williams Realty
www.eloisegift.com
HABLO ESPANOL