Hilton Head home loans follow Fannie Mae guidelines and the guildelines of private mortgage insurance companies.  These guidelines are being revised almost every week because of increased foreclosure rates and late mortgage payments.  Moreover, new regulations in the recently passed Housing and Recovery Act of 2008 and new restrictions by the Federal Reserve are forcing Hilton Head mortgage lenders to become more stringent in their underwriting process going forward.  

Hilton Head Lenders Now Require 

• Higher credit scores and bigger down payments.
•  Documentation of income and ability to repay the loan. 
• Heavy limitations on easy to get stated income or “no doc” loans.  Self employed borrowers are reluctant historically to document all of their income and are cerrtain to be affected by this requirement. 

More Changes Are Coming 

• Beginning in October of 2009, escrow accounts for taxes and insurance will be required on all mortgage loans. 
• Loans with negative amortization are being eliminated.. 
• Loans with pre-payment penalties will be restricted.

Your Advantage Now

• You may still buy a Hilton Head area property with 5% down. In the future at least 10% down may be required. Regardless, this is still affordable for most borrowers.
• Mortgage rates are predicted to trend upward long term.  In the near future, you will get a better rate than if you wait. 

 Prequalify Again and Be Current

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