This week the government relaxed the capital requirement of Fannie Mae and Freddie Mac as part of a plan to quickly inject an additional $200 billion of financing for home loans. As you have heard us talk about the tightening of credit quidelines across the board recently, this comes as a good indicator that Washington might be realizing that they need to reinstate some of the loan programs that made sense back into the market.

Not necessarily the stated income or no doc loans that helped put the mortgage industry in the predicament is is presently in, but the make sense guidelines and common sense loans. Presently, underwriters are so scared to put their name on a loan approval, that many times they require the borrower to provide additional documentation that the same borrower two years ago simply applied online and went to closing to sign the closing documents.

The credit tightening is affecting the housing market more than Washington may realize so I am happy to see they have decided to reduce the capital requirement of FNMA and Freddie Mac. In the next 30 to 60 days, we should see an easing of guideline requirements thus making a mortgage approval easier to obtain.

Keep in mind that while many programs have tightened, we still offer 100% financing programs as well as stated income loans here at SA Lenders. For immediate pre-approval, please apply online at www.salenders.com or call us at 830-980-8100. We are your preferred lender for San Antonio and across Texas.