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
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