Fannie Mae Labels Northern Virginia A “Declining Market,” Keller Williams Arlington Asks: What Does This Mean?
April 17th, 2008 Categories: Buying, Keller Williams
Fannie Mae, a publically traded financial services company that helps lenders serve homebuyers, has been issuing declining market flags during recent computerized underwirting review. The flag calls for a closer look at the property’s appraisal to verify the value accurately reflects current market conditions. Unfortunately, it appears most of Northern Virginia is included in this “declining market” area (speculation from the Washington Post says this includes Alexandria, Arlington, Fairfax County and city, Falls Church, and other counties).
But what does all of this mean to you, the buyer?? It means that you’re going to have to put down more cash IF you want to buy a property located in one of these markets right now. A 20% down payment will now be 25%, 5% will now be 10%, etc. Mortgage applicants seeking 100% financing will now only receive 95% funding, requiring you again to come up with an additional 5% in cash.
Don’t let this discourage from looking for and buying your new home. There are ways around this….let’s talk!
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