Tuesday, September 2, 2014

Ever since the financial crisis of 2008 the mortgage industry has turned very very conservative. Not surprising really in light of the number of loans that went into foreclosure as real estate values tumbled around the country. Well, that of course, is old news. The last 2 years have seen a complete turn around in home values. One of the things that I have been waiting for, and counting on, is a return to a more normal lending environment - where we make loans that are maybe a touch riskier, but make sense, for high quality borrowers. We are finally starting to see that. A slight easing of credit standards. It's about time!

Jumbo loans were practically non-existent in 2008 and 2009 and had been slow to return to the marketplace until 2 years ago and then rates were high and so were required down payments. Last year we saw some loosening in down payment requirements and vastly improved rates. This year it is getting even better for borrowers with excellent credit!

I can now do a Jumbo Mortgage with just 5% down up to $650,000! A 10% down payment will get you a loan amount up to $1,000,000! Here are the specifics:

• Single Family Home or condominium
• 5% down payment up to $650,000 loan amount or 10% down up to $1,000,000
• Minimum credit score of 740 for max financing (700 with 5% more down)
• Rates as low as 3.5% with a 7 Year ARM or 3.875% with a 10 Year ARM
• Private mortgage insurance (PMI) is required for LTV's over 80%

So, if you are a homebuyer who has the income to qualify to buy their dream home but doesn't want to wait years trying to save a big downpayment, now there is a great new option that will allow them to buy the perfect house now, while rates are still ridiculously low and before home prices go up further!

Ken Mascia, Licensed Loan Officer NMLS 135323
(248) 644-1200, ext 15


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