Across the country property values have done a free fall while some areas have remained relatively stable. In Maricopa County Arizona, Fannie Mae has declared this county a declining market. What this means is that every appraisal that they look at, they are going to cut the value of the appraisal by 5%. What this means now is that you will have to have to put money down if you want to buy a home. They will no longer do 100% financing. If you are trying to refinance, you better have equity in your home or they will no longer look at you.
There are portfolio lenders out there that will still do one hundred percent financing, they just charge a higher rate for it. US Bank still offers 100% financing in areas that are deemed declining by Fannie Mae, you can expect to pay about 1.25% higher rates over conventional lenders that sell their loans to the Fannie Mae and Freddie Mac corporations.
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