Oh boo hoo. People with good credit and money for a down payment will do just fine.
http://money.cnn.com/2007/08/10/real_estate/mortgage_rates/index.htm?postversion=2007081115
from the article:
The one catch is this: You’ve got to be a buyer with good credit, a low debt to income ratio, a healthy down payment, verifiable income, and looking to finance less than $417,000 (the cutoff for so-called jumbo loans).
Those characteristics basically define someone who qualifies for a loan through a government program like Fannie Mae, which makes up about 50 percent of all outstanding mortgages, according to Guy Cecala, publisher of the industry newsletter Inside Mortgage Finance.
Mortgage meltdown contagion
Graiver said to expect to pay a down payment of at least 10 percent, and have a FICO credit score of 620 or higher in order to get a rate between 6.2 and 7.5 percent. Perhaps 90 percent of home buyers qualify for that prime rate, although if you want a rate below 7 percent you probably need a FICO score above 660.
To get the best deal, “plan on coming to my office with your tax returns and a down payment,” said Bob Mouton, President of the Long Island-based American Mortgage Group.
On the other hand, if you need a jumbo note, you might very well be out of luck.
Thornburg Mortgage discovered on Monday evening that they couldn’t roll over their portfolio, because no one wants to buy paper with the word “mortgage” in it, even when it is very high quality paper.