Don't You Believe It !
March 24, 2009
I heard an interview yesterday evening in which the interviewee was in favor of the Treasury Department's plan to purchase "toxic Assets from the banks and thereby allow the banks to make loans to home buyers. The underlying assumption seemed to be that the housing market's decline in sales was due to a lack of available loans.
In a conversation with a mortgage broker and with a banker, there has not been an inability to make loans to "qualified borrowers". For our Inland Empire market area, the FHA loan is a great fit. With a maximum loan amount of $355,350 with a 3.5% down payment, many buyers are now choosing FHA financing. It may even be possible to obtain an FHA loan with 3.5% down up to $500,000. Loans in excess of the Fannie Mae, Freddie Mac loan limit of $417,000, but no greater than $500,000 may require a higher credit score and a higher interest rate. These loans often only require a 10% down payment. Interest rates on these higher loans have been quoted in the high 5% - low 6% range.
As I listen to our congressmen and to financial pundits, I do have a question as to what loans they have in mind. It must be for the very high end loans. Certainly that section of the real estate market has been extremely slow and we have attributed the lack of transactions to the lack of "jumbo" loans.
But.... if you are a first time buyer, or a purchaser of a home under the $500,000 selling price,
call us. We would love to put you in touch with a loan officer who can qualify you for a loan.
Don't you believe that lack of loans is responsible for the lack of home buyers.
I heard an interview yesterday evening in which the interviewee was in favor of the Treasury Department's plan to purchase "toxic Assets from the banks and thereby allow the banks to make loans to home buyers. The underlying assumption seemed to be that the housing market's decline in sales was due to a lack of available loans.
In a conversation with a mortgage broker and with a banker, there has not been an inability to make loans to "qualified borrowers". For our Inland Empire market area, the FHA loan is a great fit. With a maximum loan amount of $355,350 with a 3.5% down payment, many buyers are now choosing FHA financing. It may even be possible to obtain an FHA loan with 3.5% down up to $500,000. Loans in excess of the Fannie Mae, Freddie Mac loan limit of $417,000, but no greater than $500,000 may require a higher credit score and a higher interest rate. These loans often only require a 10% down payment. Interest rates on these higher loans have been quoted in the high 5% - low 6% range.
As I listen to our congressmen and to financial pundits, I do have a question as to what loans they have in mind. It must be for the very high end loans. Certainly that section of the real estate market has been extremely slow and we have attributed the lack of transactions to the lack of "jumbo" loans.
But.... if you are a first time buyer, or a purchaser of a home under the $500,000 selling price,
call us. We would love to put you in touch with a loan officer who can qualify you for a loan.
Don't you believe that lack of loans is responsible for the lack of home buyers.
posted by shirley harry at 8:08 AM
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