Tuesday, February 5, 2008

The IE is rated Category-5

There’s a hurricane heading for the IE and Countrywide Financial has rated it a Cat-5! Countrywide has rated it’s market areas from Cat-1 to Cat-5 and the full report is posted here. Of course, Riverside/San Berdu is rated a Category 5. What does this mean? It means they expect the market in this area to be the most “challenging” as far as housing goes. Their lending standards ( I know, what standards…) are different for each area. The worse the rating the more difficult financing will be to acquire. Being a Cat-5 area they are requiring a lower loan to value percentage. 90% is the max they will go, so you either need 10% down or a high appraisal. I’ve also read in some realtor blogs that they also bumping up the paperwork, income and FICO requirements on these Cat-5 loans. Bottom line, it just got even harder to get a loan.


Soft Market Category 4-5 loans

Maximum financing will be reduced by 5%Example: Maximum financing per Countrywide's Loan Program Guide allows for 95% LTV. Loans in Category 4-5 will be limited to a new max LTV of 90%.

Soft Market Category 1-3 loans
Maximum financing will be reduced by 5%, only if the appraisal or appraisal review indicates any of the following:
* Declining Market
* Oversupply
* Marketing time over 6 months


Snob from Morgan Hill said...

Ho Ho Ho. Christmas is coming early this year.

Anonymous said...

Im beginning to think low 200,000s for good homes is not out of the question this year

golfer_X said...

Depending on where you want to live, there are already low 200s for nice, big, nearly new homes in Hemet, Perris, SanJacinto, MoVal, Wildomar and some in Murietta, Lake Elsinore and Temecula. There are also about 100 in Riverside but I don't think you would want to live in very many of those.