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The Camel’s Nose or a Slippery Slope?

camelIt’s been awhile since I’ve seen some of the “creative” financing arrangements out in the open.  Lately, though, loan officers have been e-mailing me (loan officers would never spam) or chatting me up about ways to get my buyers into the home of their dreams.

Back, as if the nightmare of the housing bubble was a distant memory, are mortgages that offer 102% financing (that’s right! more than the house is worth), ARMs of various lengths with low, low, low interest rates, 100% “Doctor” loans (they’ll probably need it), the much used 80/10/10.  Yep.  They’re all making another appearance on the mortgage landscape.

Who the heck cares about “skin in the game”?  We need to make loans.  Now, to be fair, you have to have astronomical credit scores and all sorts of other documentation that shows you’re an A+ borrower.  I wonder, though, if this might be the proverbial camel’s nose under the tent or a slippery slope back to the days when, if you could fog a mirror, you could get a mortgage.

Far be it from me to warn off the next housing boom.  With any luck, I’ll live through one more whopper and hoard my pennies like Scrooge McDuck and get the hell out when the bust comes, again.  I was just thinking that maybe we should wait a little before all the weird stuff comes out, again. You know, in the interest of doing the right thing.

Nah.  Let’s go for it!

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Written By

“Loves sunrise walks on the beach, quaint B & Bs, former Barbie® boyfriend..." Ken is a sole practitioner and Realtor Extraordinaire in the beautiful MD Suburbs of DC. When he's not spouting off on Agent Genius he holds court from his home office in Glenn Dale, MD or the office for RE/MAX Advantage Realty in Fulton, MD...and always on the MD Suburbs of DC Blog

12 Comments

12 Comments

  1. Ben Goheen

    April 4, 2010 at 10:24 am

    Last night I was looking at a website for a local condo complex that mentions “phenomenal financing…your credit score doesn’t matter! The offer is available even if you’ve had a foreclosure, short sale or bankruptcy. Take this opportunity to establish and re-build your credit.”

    The offer is 5% down at a 5% fixed rate for 5 years. While it may fill up some vacant units now, what’s going to happen in 5 years? Way to think long term people…

    • Ken Montville

      April 4, 2010 at 12:03 pm

      …or how about a loan for the young guy just starting his first job and only one credit line. One lender says co-signer required, another lender says no co-signer, no appraisal, no inspection. Huh!?!?

  2. RealEstate Babble

    April 4, 2010 at 12:31 pm

    AgentGenius: The Camel’s Nose or a Slippery Slope? https://bit.ly/9EtiU6 Full https://bit.ly/cYfUD7

  3. topsy_top20k_en

    April 4, 2010 at 12:52 pm

    The Camel’s Nose or a Slippery Slope?: It’s been awhile since I’ve seen some of the “creative” financing arrangeme… https://bit.ly/9l2d9K

  4. Ken Montville

    April 4, 2010 at 12:52 pm

    @agentgenius The Camel’s Nose or a Slippery Slope? https://bit.ly/cZzRyO

  5. realdiggity

    April 4, 2010 at 1:39 pm

    The Camel’s Nose or a Slippery Slope?: comments https://bit.ly/9H4L0x

  6. Natasha Hall

    April 5, 2010 at 12:38 am

    The Camel's Nose or a Slippery Slope? – It's been awhile since I've seen some of the "creative" financing arrangeme… https://ow.ly/16YIyC

  7. Long Beach Homes

    April 5, 2010 at 5:42 am

    The Camel's Nose or a Slippery Slope? https://bit.ly/b0oyuB

  8. Century 21

    April 5, 2010 at 4:38 pm

    The Camel’s Nose or a Slippery Slope? https://bit.ly/cAN9pk (@agentgenius)

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