I was talking with a client this morning - it looks like I am going to be refinancing his investment property. The lender that he is currently with sent him a statement saying they will not extend his loan - it's a 5/1 - because they no longer do investor loans!
Additionally, I got a statement from American Express. I've had a business credit line with them for the last 20 years in the amount of $25K. The notice said that due to credit risk in my line of business they were reducing my credit line to $1K!
The market is really nuts right now. Lenders are scared and the money markets are contracting.
There is an economic stimulus package that could raise conforming loan limits as high as $725K - more probably to the $625K range - and that would help us here in California. We are still going gangbusters in Dallas - where 92% of the loans are conforming!!
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