Back to the Future

Getting mortgage money has become much harder. That statement is true -- but only to a certain extent. What has really happened is that we have gone back to the type of lending practices that were the norm prior to the sub-prime debacle.

• Seller-assisted programs that allow the seller to provide the down-payment for the buyer will be phased out on October 1st.
• The number of investment properties a person may own and still get a conventional loan will be limited in the future.
• A good credit score and documentation are now the norm.

Of course, other programs aimed primarily at first-time borrowers are not changing too much.

• FHA will still allow gifts from the family to help a buyer with down payments and closing costs. The downpayment, however, will increase to 3.5% from 3%. And, the monthly MIP payment will depend on the borrower's credit score among other criteria.
  
• NM-MFA (New Mexico Mortgage Finance Authority) remains largely unchanged. A buyer whose income is within the guidelines will find this type of loan very attractive.