Mortgage Market Recovery?

Businessweek reports on new subprime lending.

The local newspaper here in Florida had an article this morning on the recovery of the mortgage market (see Businessweek article.)

In Sarasota County, 402 homes sold in October, compared with 354 in September. Some were all-cash deals, but most were mortgage-backed. In Manatee County, 200 home sales closed in October, compared with 128 a year earlier.

"There's plenty of money after Fannie and Freddie became liquid again, and the Federal Housing Administration loans have always been a stalwart," said Flood, who recently established a Covenant Mortgage Corp. branch on Main Street.

Someone with the less-than-stellar credit score of 580 and a decent job will likely qualify for an FHA loan on a single-family home in this region for up to $442,500, Flood said.