Hot Cars Hot Models and Hot Mortgage Insurance Returns to the Real Estate Purchase Market in Alameda

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Did you know that Conventional Mortgage Insurance is back?

Home Buyers have more opportunity than they have had since January 2008!!!

With National Conforming Loan limits of $417,000 and below home buyers can once again put just 3% down if they have a 680 fico credit score! FHA currently still requires 3.5% down and a 96.5% loan to value.  Conventional mortgage loan pricing does have pricing hits associated with higher loan to value loans so FHA financing may have a lower interest rate.  FHA financing however, has both upfront and monthly mortgage insurance.  As a consumer, it’s important to go over both options very carefully with your mortgage professional.

On High Balance Loans now going to $625,500.00 from $729,750 in high cost counties like Alameda, Contra Costa, Santa Clara, and San Francisco, Conventional Financing has a minimum down payment of 10%.  A borrower must have a 620 fico however with a lower credit score there will be hits to both mortgage insurance and interest rate.  The maximum purchase price for conventional high balance loans in high cost areas is $695,000.

FHA also goes to $625,500.  FHA allows just 3.5% down on their high balance loans as well allowing a borrower to purchase upwards of $648,186 in high cost areas like Alameda, Contra Costa, Santa Clara, and San Francisco.

Loans above 625,500 are available and still very favorable, however because this is primarily portfolio money the most attractive terms are adjustable rate mortgages fixed for a maximum of 10 years. The good news is Mortgage Insurance is available for Jumbo Loan as well.  Currently a home buyer can purchase a home using jumbo financing and 10% down to borrower up to 2 Million!

 Related Videos:

FHA vs Conventional Financing:

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The Top 5 Questions Home Buyers Have When Getting a Home Loan

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