Lending standards loosening? Major price rise expected?

[Hersh M.]

Source - http://themortgagereports.com/21442/low-down-payme...

"Housing starts have been fueled by rising rents, cheap mortgage rates, and an abundance of low- and no-downpayment mortgages.

The 80/10/10 piggyback loan has been in high demand of late, and buyers are finding the Fannie Mae HomeReady™ home loan to be a worthwhile alternative to FHA lending.

The math for "Should I rent or should I buy?" has shifted and this month's housing starts data reflects that.

It's an excellent time to shop for a home."

"The good news is that mortgage approvals are getting simpler.

In addition to reducing their loan approval standards, mortgage lenders have recently lowered minimum credit score requirements, made concessions for self-employed income, and granted leniency on loans which "make sense".

Furthermore, there are more low- and no-down payment loans available than during any period this decade.

In addition to the Conventional 97 program and HomeReady™ programs, which are backed by Fannie Mae and require just 3% down, demand for the FHA 96.5% LTV program is high, as are requests for "piggyback loans".

There are also the VA and USDA loan programs -- both of which allow 100% financing."