Ventura County Loan To Value Chart - January through June 2010

Note: The above chart can be clicked on and enlarged.

I haven't posted the loan to value charts in awhile. This one is for the period between January 2010 and June 2010.

The chart is simply purchase price on the left with loan to value ratio across the bottom. The different color coding indicates the type of loan (Conventional, FHA, Private Party or VA).

You can really see various underwriting guidelines come into play. That arching blue line going from top left sloping down right is the effect of the conforming loan limit on the conventional market. The solid line at 80% LTV is the effect of traditional underwriting guidelines with no Mortgage insurance. At 75% LTV that line usually indicates 2nd home purchases and the like. The blue line at 90% LTV most likely shows conventional loans with mortgage insurance. Then there is of course the absolutely massive wall of FHA financed properties.

I think the high LTV FHA high balance FHA loans are extremely risky. These are people who can't save and have high consumption. Their prospect for higher income is low but lower income is high and it isn't like they have shown a propensity for saving for a rainy day. Also FHA loans are underwritten to extremely high DTI ratios (as high as 47% front and 57% back end).