So now the government stepped in and is fixing he problem - not! The fact is the problem fixed itself. There are no investors out there buying stated-income 100% financed loans - and there will probably never be again! Loosing a few trillion in wealth tends to make a permanent impression.
There is nothing worse than loosing out on a home because you could not provide a strong pre-approval letter. Listing agents are starting to demand not only strong pre-approval letters that specifically mention what steps the lender has taken, but proof of funds and even Fannie Mae approval printouts!
This is an excellent program for eligible and qualified 1st time buyers (or buyers buying in the target areas) of the City of Sacramento and the unincorporated County of Sacramento.
The 2010 allocation just came out, and they have enough funding for $20 million worth of mortgages.
OK, so now that the new Good Faith Estimate (GFE) is "in use" those damn lenders are going to have to give us accurate estimates, right? Well… er… no.