Lending Landscape - December 27, 2007

The lending landscape is continuing to deteriorate, except for FHA lending. Rates bumped up a bit this past week -

The government-sponsored loan buyer said the rate on a 30-year fixed-rate loan averaged 6.17 percent for the week ending Dec. 27, up from 6.14 percent a week earlier.

At this time last year, the 30-year fixed-rate mortgage averaged 6.18 percent.

More concerns about the mortgage meltdown have forced Fannie Mae and Freddie Mac to assign risk premiums on high loan to value properties and for buyers with even decent credit.

FHA loans are gaining ground as they allow up to 97% LTV and accept a variety of credit scores. Some pending legislation could expand the capability of the government guaranteed program. Borrowers with large downpayments and credit scores above 680 will continue to have a variety of loan programs available to them, at rates comparable to the past few years.