Spot On: Getting a Mortgage Loan Today

This recent article in Forbes correctly identifies the current market for home mortgages.

I would further add that a buyer putting down 25%, who has substantial assets liquid in the bank, a stellar credit score, and is no longer working for a salary (read retired or independent contractor), will find it harder to get a loan for an investment property than a person of modest means and decent credit scores with 3.5% down purchasing their primary residence.

Once again the resale markets for residential loans are driving the market. What is and is not possible is not governed by ability to pay as much as ability for the lender to resell the loan with other mortgage backed securities. That was the essence of the mortgage crisis earlier. To the other absurd extreme we go! The good news is that people are gettting loans. It's just harder across the board, no matter how qualified a buyer is.