OMG! The credit market is frozen solid! (loan, interest rate, credit score)

[evilnewbie]

Wow, what a matter of months has changed things around... I remember qualifying for a lot loan at 20% down payment with 7% interest rates 4-5 months ago on a 5-year balloon payment and now.... NOPE... they are asking 35% down and offering 10% interest rates with a 3-year balloon payment... this is completely unacceptable and at the same time, I can't buy my piece of land ... I can't find any lender offering anything more reasonable what am I going to do? I guess I can't buy the land... even with a 780+ credit score...

[TimtheGuy]

Originally Posted by evilnewbie

Wow, what a matter of months has changed things around... I remember qualifying for a lot loan at 20% down payment with 7% interest rates 4-5 months ago on a 5-year balloon payment and now.... NOPE... they are asking 35% down and offering 10% interest rates with a 3-year balloon payment... this is completely unacceptable and at the same time, I can't buy my piece of land ... I can't find any lender offering anything more reasonable what am I going to do? I guess I can't buy the land... even with a 780+ credit score...

I just had a customer in my office inquire about down payment on a bare lot loan. I gave him my standard response of 50% down. It too would be a 3-5yr. balloon and I would probably want a rate in the vicinity of 10% like you were quoted.

PS. We typically don't pull credit for our portfolio loans.