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We usually opt for non-traditional lending when ever possible. There's a lot of folks out there who have a lot of money and nowhere to invest it. See if any of them would like a real estate backed loan. They'd get a higher percentage rate than many other places to invest.
It appears that the major banks are tightening loan standards and that doesn’t bode well for commercial real estate or the new home builders. Now the real question is: are they tightening in reaction to the Fed’s recent generosity (sure Big Guy, you can have it all), or are the banks doing their typical dance at the start of a recession where existing commercial loans are called and the only way to borrow new money is to provide 10X the amount in collateral?
Loan standards are tightening and there are good reasons; banks and others just aren't sure about individual finances at this time and aren't taking any chances.
Because of various federal and or local actions (forbearance, eviction moratoriums, student loan and other credit forbearance, etc..) looking at credit reports over past few months may not give an accurate picture of household finances.
We usually opt for non-traditional lending when ever possible. There's a lot of folks out there who have a lot of money and nowhere to invest it. See if any of them would like a real estate backed loan. They'd get a higher percentage rate than many other places to invest.
What sort of rates are you seeing from non-traditional lenders? If you have rates for jumbo loan values (specifically $1MM - $2MM), I'd be doubly curious.
If they're waiting they just missed it March 18th. Try again in 10 years and try to pay attention next time?
The March was just the beginning. The first shock. I think aftershock will come later this year when some of the biggest companies start to lay off employees and this will set start to the series of horrible economical events
What sort of rates are you seeing from non-traditional lenders? If you have rates for jumbo loan values (specifically $1MM - $2MM), I'd be doubly curious.
I can’t imagine it’s better than traditional lenders
Retail banks are difficult, but of course if you go to somewhere like a mortgage broker, they then immediately sell your loan to the same banks where you wouldn’t have been able to get the loan in the first place. That is what happened to me. I tried to get a loan through my bank and couldn’t get the terms I wanted. I went through a broker, who then sold it to one of the other big banks.
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