Posted by: Marvin Remmich | February 14, 2011

American Dream Under Attack| Moving From Nation of Owners to Nation of Renters?

 in case you didn’t know it…..obtaining a mortgage is about to become significantly more difficult.

Here is what Harris Real Estate University expects to happen:

* GSE (Fannie and Freddie) Market share to reduce from 95% to 40%. Think about that for a moment. When was the last time you had a buyer who DIDN’T use Fannie or Freddie for their mortgage.
* Reduce the GSE Loan Limit. The loan limit is $729,750 in the most expensive areas in the US. Expect the max loan limit to become no greater than $429,750.
* Increase the minimum downpayment for low income borrowers to 10%.
* For non-low income buyers the new downpayment will be 20%.
* Jumbo (Non-conforming) loans will require 30% down payments
* Obtaining a loan will be more expensive. In addition to the downpayment borrowers will need to come up with significantly more just to secure the loan.
* There IS a push away from homeowners ship and towards renting. The Obama Administration has stated that there should be subsidies for renters!

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