Quote:
Originally Posted by painthappy
I apologize in advance, just venting right now.
I'm in the process of (at least I thought I was) of doing more than just owning a boat in a marina on Lake Winnipesaukee. Don't get me wrong, I love my big sailboat, love the marina, but it's time to find a condo. Figured I wanted one with a water view and either on the beach or a 500' walk... I found some.
"Great!", I say to myself.
Call around about a second loan. Wells fargo, Merrimack Mortgage, etc... All want 20 to 25% down on the purchase price, not the value, on the purchase price.
So a $250,000 condo purchase, I would need ~ $60,000 minimum down on it.
No wonder places are taking a while to sell. I suppose my next step would be to look for a lender who would be willing to do it in house? Instead of big banks that are just going to resell it and have these ridiculous requirements.
I could see putting 10% down, as I'd rather not deplete my account 60 - 70k right now. Heck, at that point, I might as well just forget the bank and pay in cash... But I don't want to do that either. I have it tied up in investments that are actually making me money.
Told the wife that I'll probably just end up getting a bigger sailboat in the spring.
Anyhow, sorry for the rant. Fresh in my mind as I get off the phone. Good luck to those buying condos around Winni, and better luck to those selling.
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Get used to tight lending requirements as they are here to stay. While the Banks were
partially to blame for the real estate mess we are in (politicians and homeowners are the other two major contributors) they have taken about 95% of the blame for the problem since the American public and arrogant politicians refuse to admit their culpability. Plus, faceless institutions like banks make easy targets. Thus, when Banks make new loans they must be 110% certain that they comply with government underwriting standards or hypocrites like Chris Dodd and Barney Frank (two of the biggest proponents of the GSEs and also the authors of flawed over the top banking regulations. How they were able to be on both ends of this mess still amazes me) are all over them with more rules and fines.
In any event, I wish you luck with your transaction.