the End of Fannie & Freddie -end of flipping houses?
from BestTF
However, it is interesting that the FHFA has recently announced a return to the subprime style ‘No-Doc’ mortgage loan, at least for refinancing delinquent homeowners, and is being heralded as the ‘solution’ to the foreclosure crisis. Perhaps they shouldn’t have gotten rid of them in the first place?
Anyway, real question is, if Fannie and Freddie are done away with altogether, or at least if low down payment loans become a thing of the past, and 20% down is the new standard for all (a reversal of current trends), will it be the end of flipping houses and a crippling blow to real estate investors?
Fortunately on the acquisitions side transactional lenders are still offering 100% plus financing, regardless of credit, employment, assets or appraised value.
However, on the sell side it could certainly mean a need for some investors and sellers to tweak their strategy.
from BestTF
However, it is interesting that the FHFA has recently announced a return to the subprime style ‘No-Doc’ mortgage loan, at least for refinancing delinquent homeowners, and is being heralded as the ‘solution’ to the foreclosure crisis. Perhaps they shouldn’t have gotten rid of them in the first place?
Anyway, real question is, if Fannie and Freddie are done away with altogether, or at least if low down payment loans become a thing of the past, and 20% down is the new standard for all (a reversal of current trends), will it be the end of flipping houses and a crippling blow to real estate investors?
Fortunately on the acquisitions side transactional lenders are still offering 100% plus financing, regardless of credit, employment, assets or appraised value.
However, on the sell side it could certainly mean a need for some investors and sellers to tweak their strategy.
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Mike
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