We financed a piece of investment property two years ago that we owned outright, wanting to invest the funds elsewhere.
The application process was a nightmare, even though our credit is excellent.
With rates recently dropping, we are in the process of doing a re-fi with the same mortgage group (AmeriSave.com), and just in the two years seeing a significant increase in information we have to provide - even though our credit rating is over 800......
If this keeps up, no one will be able to finance any property. Period.
PS: The rates, service, and response from Amerisave staff are incredible - cannot recommend them highly enough. Other in the industry tell me they can’t touch the rates they offer. If you are looking for a mortgage or re-fi, PM me and I’ll give you a great person to contact. Not the same person who served us 2 years ago, but just as incredible. Don’t know her personally, but cannot recommend more highly.....give her a 12 on a 10pt. scale....
Congrats! Well above "average" but if you are disciplined, it's effortless - it's a state of mind.
If this keeps up, no one will be able to finance any property. Period.
In the last few years a lot of residential investment/rental properties have been bought for cash or with less than 20% financed, either by large PE firms or hedge funds (like Blackstone, or Colony American, and some were even created / spun off for this purpose, like the largest "pure" public REIT "American homes 4 Rent") or by HNW/UHNW cash-rich individuals / co-ops / 1031s etc., so the process entirely bypassed the whole morass of mortgage loan "system" as most people know it. It's pretty tough competition, though it seems like at this point these REITS are selling some chunks of appreciated properties in some areas and moving into other, more profitable for them, venues.
Homes have been way over priced for many years. It's why most nowadays are being purchased imported foreigners with lots of money or government employees, most of which are considered to have "secure" jobs with benefits etc.
Outside of those mentioned above, most buying can barely afford them even with two incomes and it only takes one bump in the road where that home becomes their worst punishing nightmare ever.
Welcome to the new America...
Residential or commercial property?
I think that those without credit scores qualifying will still qualify on the basis of color. There will be more bad loans mandated by the government. However, those with great credit scores and jobs that underpin the original premiss for racial preferences have so muddled the Nation at every turn so as to put everything at risk.