Listings,New Construction,Buyers,Foreclosure,short sale and all the active homes in the Northern Virginia area including Fairfax, Loudoun, Prince William, Arlington & Alexandria.
Welcome to Ritu Desai- Fairfax/Loudoun County Realtor in Northern Virginia Sign in | Help

Fairfax, Loudoun County Virginia -Residential Real Estate Market Blog

Keep yourself up to date with the Northern Virginia Real Estate market and other local Northern Virginia information. Have a question or thinking about buying or selling home call Ritu Desai at Samson Properties at 703-625-4949 or email me at



  • Northern Virginia -Fairfax, Loudoun, Alexandria, Arlington & Prince William Blog, real estate Market condition written by Ritu Desai at Samson Properties.


Subprime Mortgages-What it means for you

We have heard various bubbles burst for past decade from stock, oil to real estate. Now the buzz word is lending industry and its mortgages. Banks and mortgage companies would sharply scale back lending to two groups: subprime and "Alt-A" borrowers. Consumers with low income and/or spotty credit histories are considered subprime borrowers, while Alt-A borrowers are typically those who fall short of being prime because they lack adequate income documentation.

Fannie Mae and Freddie Mac are issuing new loan guidelines. They are moving away from 100% financing, and limited income documentation loans, and high loan to value investment loans. So many of your less than perfect credit, reduced documentation, or in other words non-conforming borrowers will either need to improve their credit or put money down on homes.

Over 25 sub-prime lenders have shut their doors. It will be a dominoe effect to the sub-prime companies holding these loans and losing money on them day by day. This will likely cause increased delinquency, higher foreclosure rates, and property value declines nationwide. It will get tougher to get loans approved and lot more people will end up renting versus owning a home.


Please feel free to share your thoughts and comments about this change.

Posted: Monday, March 12, 2007 11:32 AM by Ritu Desai


TrackBack said:

# March 13, 2007 10:43 AM
Leave a Comment





Comment Notification

Subscribe to this post's comments using RSS