Hilde's Mortgage Blog

I just came across the excerpt below. It highlights the fact that the tight underwriting requirements and add-on cost for lower credit scores will stay with us for a while longer. Also the add-on loan fees for duplex to four-plex, second homes and investment properties are not likely going away any time soon either.  

"GSEs: No Plans to Cut Guarantee Fees
American Banker (04/22/09) P. 9
When asked by Mortgage Bankers Association Chairman-elect Rob Story, CMB, at the trade group's recent conference whether Fannie Mae will lower its guarantee fees, company representatives answered in the negative. Thomas Lund, Fannie Mae's executive vice president of single-family mortgage business, said its fees remain lower than those charged by nonagency investors in the jumbo market; they also balance the need to offer liquidity to the mortgage market and safeguard taxpayers from paying for bad loans."

The long and short of it, pay close attention to your credit and start to save for your down payment now if you think you might be in the market to buy your home in the near future.