Here is the Loan to Value scatter chart for Ventura County for homes and condos sold in August 2008. The upper pink line represents the current conforming jumbo limit and the lower pink line represents the new conforming jumbo limit starting January 1st. The loans in between these two lines won't be closed without either a higher down payment or seller price concessions. The yellow shaded area represents the area in which mortgage insurance is tightening that I detailed in my previous post. FHA or banks taking seconds will be the only option available to borrowers in this area. You can see that FHA is definitely gaining in popularity with fewer blue dots (representing conventional loans) populating this area compared to previous months. Credit is still tightening and only price concessions are keeping sales volumes up. If those price concessions slow due to things like foreclosure moratoriums or loan modifications sales volumes should drop considerably in response.
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