End of First Magnus Has Widespread Effect on Tucson Community

The sudden halt of business for First Magnus in Tucson is having a significant impact on the Tucson community. As reported by the Arizona Daily Star, the majority of the company's local employees, about 700, will lose their jobs in the Tucson area, and local real estate agents and would-be home buyers are frantic to find new funding. Worse yet, the community will lose a major contributer as First Magnus has been a strong sponsor to Tucson arts, sports and community groups. For six consecutive years First Magnus has been the primary sponsor of El Tour de Tucson bicycle race, the city's largest participatory event with over 8,000 cyclists. First Magnus has also pledged $25,000 to sponsor upcoming events for UAPresents , the performing arts presenter at the University of Arizona. The company has been a visible contributor to University of Arizona athletics, and was sponsoring this weekend's Lute Olsen All-Star Classic , a fundraising and basketball exhibition.

Many local real estate and mortgage professionals don't expect this event to have a long lasting affect on the housing market as there are plenty of other lending sources available to provide loans. Still it will be more difficult for some Tucson home buyers to get loans. Those borrowers that plan on putting 10 to 20% down and getting fixed rates will have a better chance of getting the financing they are looking for, while those borrowers with less cash down may have more problems. The next few weeks will reveal a lot about how consumers are being effected and the impact it will have on Tucson's Real Estate market.