The  housing industry is looking for ways to spur growth. Fannie Mae has recently changed its practice of requiring a lower loan to value ration in declining or depreciating real estate markets. This move has done little to improve the financing options for potential home buyers in these markets. Home buyers are finding out that they have another obstacle that they can not over come in a number of markets in the country. Lenders do not have companies that will insure the loans if the borrower has less than a twenty percent down payment. This essentially eliminates these borrowers from the market. In addition to the declining market challenge. A growing number of mortgage insurance companies will not offer coverage to borrowers who have credit scores below a  620 or offer coverage on investment properties if the borrower has a credit score below a 720. The housing market will face an uphill challenge in recovering until all parties involved in financing the transaction are on the same page and programs aimed towards bringing more home buyers into the market are unveiled.

6-29-2008©LowRateMortgage.com

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