In talking to people in Harrisonburg and around the state lately, I have heard several people comment about how it is now near impossible to obtain a mortgage to buy a home.  This has not been my experience --- I am still seeing most (reasonably qualified) buyers having no problem obtaining a mortgage.

A few caveats:

• It may be difficult to borrow 100% of the purchase price (unless you are a qualified veterman)
• It may be difficult if you need to borrow based on "stated income" or "stated assets"
• Somewhat of a restatement, but It may be difficult if you have no money in the bank for a downpayment and closing costs

Here are a few excerpts from a memo I received last week from Coldwell Banker Mortgage:

• "Over the last few days, we have received many questions in regards to the availability of mortgage funds in the credit markets. Now that the Federal Government controls Fannie Mae and Freddie Mac in addition to FHA and VA, these traditional sources of mortgage funding are still readily available."
• "In markets characterized as “stable”, conventional financing is available to a 95% LTV while a first time home buyer can potentially obtain conventional financing to a 97% LTV."

Read the full memo here.

If you are considering buying, don't be scared off by a concern that mortgages are not available.  In fact --- in addition to mortgages being available, 30-year fixed rates are very low right now!