2 Loan Programs You Must Know About

Our Southern California housing market demands a lot from buyers.  Whether purchasing a primary residence, a second home, or investment property the biggest challenge for all potential home buyers is down payment.  Recent lending guideline enhancements mean there are 2 loan programs you must know about.  For those looking at purchasing a second home or investment property you can now exceed the conforming limit of $417,000 and put down as little as 15% for a one-unit property.   The previous minimum required down payment amount was 20% and that was below the conforming limit.

 

Under the old rules you would be capped at a loan amount of $417,000 and be required to put down 20%.  Now you can exceed the conforming limit and put down 5% less.

 

Comparison of old and new lending guidelines:

	Old guidelines		New guidelines
Purchase price	$521,250.00	Purchase price	$521,250.00
Loan amount	$417,000.00	Loan amount	$443,062.50
Down payment (20%)	$104,250.00	Down payment (15%)	$78,187.50

 

To find out more about this loan program including monthly payments click here. 

By David Hughson

Mortgage Planner

858-863-0264