Commercial lenders are tightening their requirements

[Rich Weese]

I just had an apartment transaction fall through yesterday due to changes in lenders requirements for buyer. The lender reduce the loan amount by $1 million and required a reserve account set up for 12 months P ITI, $725,000. There was no financing contingency in the transaction so buyer chose to forfeit significant EMD.

I have not verified but was told by another potential buyer that Chase bank is now requiring 18 months reserve for PI TI. This will change a lot of values on properties and ability and interest of buyers to purchase, in my opinion.