RIO RANCHO A DECLINING MARKET

The Albuquerque MSA which includes Rio Rancho has been designated as a Category II for declining market. This has been the case for the past six months. As far as financing is concerned, it is business as usual UNLESS the appraiser indicates the property is in a declining market OR oversupplied OR the marketing time is over six months. IF the appraiser identifies the property as such, then the loan-to-value must be reduced by 5%. Again, SOME lenders require additional information. This does NOT mean that the borrower cannot buy the home. If the borrower is putting 10% or more down, it does not make any difference !!!! IF the borrower is only putting 5% down, we would require an additional 5% down. To date I have not had one issue.