The declining markets approach being utilized by some banks is fairly consistent. Alameda/Contra Costa are being hit hard, whereas SF, Marin, San Mateo have not yet (too bad).

I think the only reason you are being allowed to put 5% down instead of 10% is due to the fact you are dealing with a conforming loan under $417k.

Good luck.

I have a question. I am currently placing an offer on a short sale condo/townhouse in Daly City which cost only $319K (I offered $310K.) Wachovia & GMAC pre approved me & my gf for 100% financing but since Wachovia considered Daly City a declining market plus the listing has been on the market for a year almost, they ask me for 5% down. I wonder if GMAC will require the same downpayment while underwriting my final approval. Do you think I can appeal their decision saying that it’s just listed as 2 in your soft market chart vs other counties listed as 4?

It’s not a measure of how much I can pay–I sold my house in Chicago for just under $600,000 and moved back here, so I have plenty of money for a down payment (I had an “old fashioned mortgage” with a down payment). But I refuse to overpay for an asset, be it a stock, bond or real estate.

Since rent is so much cheaper here than my old neighborhood in Chicago (yes really), that means I’m looking for a house in the $400-$450K range, maybe a little higher if it’s justifiable (view, big lot, good schools). For now that means a lot of bank-owned properties as “real human;)” sellers haven’t generally moved to the “acceptance” phase of the fact that their house is not worth whatever they dreamed it was in 2005.

But that’ll come. So I’m not rushing out there, and if I don’t get a bank (or person) to “hit my bid,” I just wait a week and voila’ there’s another REO house or distressed seller’s house to look at.

Those are my thoughts.

While I believe this doesn’t do much in the way of stimulation and helping the homeowners who need help (and I don’t advocate that anyway) – there is talk now that Fannie/Freddie are under pressure to ease their guidelines to allow more to actually qualify for their programs. That would be another huge mistake, but at least personally, help many of my friends who are looking to refi or purchase before end of 08.

Any thoughts on my third question above? Although perhaps that can’t be answered until the Stim package is actually passed and banks have assessed the impact.

I did confirm with Chase that the terms are still the same still even in the declining markets – just the add’l 5% down requirement. Wonder if that will last…