May Rules change the Landscape of Lending
The new lending rules have really put a damper on foreign nationals purchasing property. With the falling dollar, the foreign markets were a tantalizing market with the opportunities that existed with low prices and the difference in currency. However, as usual we have taken a positive and put a damper on it.
The new rules, if you are in what Fannie Mae or Freddie Mac considers to be a depressed area, now require that a foreign national has to put 45% down in order to secure US Funding for a loan. I had a lot of Canadian and German clients that were ready to take advantage and buy that second home and now have been shut out by the new lending rules.
It appears to me we have two ways making lending rules, they are either lax or over the edge. Perhaps in time will get this right. In the mean time we are seeing a wave of buyers being turned away because of these nonsensical rules. Less that 1/100th of 1% of foreclosures belong to this category of buyer. I would love to hear the logic in the decision that put this rule in place. We are pretty good at cutting off our nose to spite our face. IMHO