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


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