Sorry that happened, but it's no surprise really: Lending is changing daily, nothing should be a surprise the last 4 weeks; we need to do what we can, with what we have and some will have to wait until we're virus-free in real estate. Ask Jason E. Gordon for his insights.

In this time of uncertainty, I'm not really surprised. It seems each new day brings about more scrambling to new information

I don't understand why lenders are doing such a thing, it seems like they are greedy to me, but what do I know.

Why do we forget how lenders failed back in 2008 and a new learning curve was introduced? They remember well and are putting into place dynamics to protect their industry. After 20008, when they got back on their feet lending resumed. Same will happen here. What we all are objecting to is the pause

I would consult with a lender.  A

Yeah, lenders are pulling out of the market.  Saw something today they're expecting a TON of defaults soon.

I'm surprised. Hopefully a AR lender like Chad Vogel can tell us what is going on.

So sorry to hear. I suspect lender issues are becoming more common these days.

Wow! That is too bad, Karen McCall. These are indeed challenging times. 

Turbulent times, cant blame lenders for being cautious.

After reading some of the provisions being forced on employers I suspect that they will be ultra cautious too.

I had not heard that. Check with Ginny Mae direct. Is anything on their site? Check with a different lender as well

I suspect it will be hard to get a loan as long as borrowers don't have to make payments.

scary times.  Hoping my daughter can close on her permanent loan very soon. 

So sorry, Karen! Perhaps, Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, George Souto or John Meussner can answer for you? 

I didn't know that you could use FHA or VA Financing to build a home.

it does not surprise me.  I have hope that this will last shorter than they think and the economy is only taking a short term hit.

Yes, lenders are pulling back on FHA's because there are no investors to buy them for some reason. Loans over 1M have also closed shop.

I think it started rumor wise around 10 days ago with 3 weeks ago they started not processing refi's even though they were almost completed. Pretty wierd.

Yes. Really. 

Unfortunately, COVID-19 is impacting many aspects of our collective lives. 

We are facing very uncertain times.  

Not a surprise. Do not take in these who are not able to handle a converntional mortgage. No proof of 20 pct down so sorry.

Yes, lending rules are changing. Also, in many places, construction like this is not allowed (now that may change in 3 to 4 months).

Unfortunately, these are difficult times and Lenders, as well as Government Entities Insuring mortgage loans, are reassessing the risk levels. Currently, new construction is viewed as fitting into that "riskier" category ...

At this time, Lenders are seeking ways to limit risk.  In addition,  they have pretty much taken Jumbo Loans off the table ...

But perhaps of more note:  FHA has increased requirements on Credit Scores on standard transactions as well.  The minimum score has just recently been increased to 640 (in MOST Cases.)

Until things stabilize with the economy, job stability, and the rest, expect more changes (and tightening). 

Hope this info proves insightful and beneficial ... I appreciate the shout out, Debe Maxwell, CRS ... and the opportunity ...

Gene

Hi Karen McCall  - and thanks Debe Maxwell, CRS for the mention!   There's a little bit of a crunch on government loans right now - without knowing specifics of your buyer's situation I wouldn't know why things were denied, but I have seen really large rate increases (that happened literally overnight) increase borrower debt-to-income ratios to the point where they no longer qualify.  Lower FICO tier options have also been cut off, so if your borrowers scores are below 660 they'll have a much tougher time.

NonQM was the first shoe to drop with what's happening, and GinneMae products have been the 2nd - they're still available, but many loans went from "do-able" to "nope" nearly overnight.  Feel free to reach out if you have any questions or know the details of their scenario, I'm happy to help you find options if they're out there.

In Texas lenders have added a few extra overlays. There hasn't been actual changes to Fanny or Freddie requirements. What We are seeing is the invesotrs that buy the loans are getting a stricter on FHA and VA loans. There have been no changes on a convential loan.

Expect changes during this troubled time.