Easing Credit Market Brings Back Jumbo Mortgages and Low Down Payments
Categories: Buying Real Estate, Mortgage News, Real Estate News
hiLast week I wrote a blog titled The Bottom of the Housing Market…Are We There Yet? I mentioned that one of the reasons Lawrence Yun, Chief Economist for the National Association of Realtors, believes we are close is because of relaxing credit markets. An article in the Washington Post describes in great detail why the markets are relaxing, especially for borrowers looking for jumbo loans.
- Interest rates for conforming mortages between $417,000 and $729,750 have come down.
- Beginning June 1st borrowers who have good credit can get a mortgage with 3-5% down, even in areas with a declining market, which includes many counties in Florida.
- FHA’s loan cap has been raised through the end of the year so it is easier to get an FHA mortgage in expensive areas.
- FHA allows a lower credit score.
Although Congress is trying to make many of the changes permanent, Bush has said he will veto the legislation. The current higher loan limits will end January 1st so, if you are in an area of high home prices and have been waiting for the right time to buy, you might not want to wait much longer.
