This newsletter's "Word" comes from Gary Fagan of Bank of America: 

Today’s mortgages… are they really as hard to obtain as the news and media would lead you to believe? The answer to this hot topic question is both yes and no. The days of the 100% loans with average to below average credit (and qualifying those who might not normally be able to qualify except on low, interest only rates) are quickly becoming extinct. But at the same time we at Bank of America Mortgage as well as some other large banks are still making plenty of 100% loans to clients with good credit ratings. Interest only products and rates are also still available.

The lenders most affected by some of the recent changes have been some of the companies who have made some very creative type loans to customers that under normal circumstances would not have been able to qualify for the price homes they were purchasing. Once these loans started making rate adjustments upward, these clients soon found themselves in situations where they could no longer afford their home. Thus defaults began occurring in record numbers.

Overall, the entire mortgage lending community has made adjustments and changes to conform to today’s market. This being said, we are still making 100% loans, making second mortgages in conjunction with 1st mortgages, and still doing interest only loans. The only real change we have incorporated is that the credit required on these types of loans has been tightened (slightly). Yes there are still loans available for those with less than perfect credit, just more difficult to obtain now for 100% financing.

Unlike the media would have you believe, we are at least locally, still in a strong real estate market and there are plenty of lenders like us at Bank of America who are more than willing to find financing options available to all of those buying and looking for a mortgage.

Gary Fagan

Vice President Mortgage

Bank of America

615 749-4669 0ffice

615 210-0435 Cell