'Jumbo' Loans Squeeze Looms Over Home Buyers Published: Thursday, 21 Apr 2011 By: Reuters Bethany and Karl Schreiber are hunting for a nice big house in the pricey Washington, D.C., suburbs and they are facing a deadline: In just a few months their third child will be born, and the tiny two-bedroom they've been inhabiting will officially get too small. But there's a second deadline looming for... [more]
'Jumbo' Loans Squeeze Looms Over Home Buyers
Published: Thursday, 21 Apr 2011 By: Reuters
Bethany and Karl Schreiber are hunting for a nice big house in the pricey Washington, D.C., suburbs and they are facing a deadline: In just a few months their third child will be born, and the tiny two-bedroom they've been inhabiting will officially get too small.
But there's a second deadline looming for them as well. Beginning on Oct. 1, the government will dial back on the size of mortgages it guarantees in high-cost areas like San Francisco, New York and Washington.
After that, the maximum loan amount that Fannie Mae and Freddie Mac will back is scheduled to drop from $729,750 to $625,500. And that may make mortgages more expensive or harder to get for buyers like the Schreibers, who are shopping in the $700,000 range and would prefer to make a downpayment of 10 percent or less.
http://www.cnbc.com/id/42701805[less]
Response by bob420
over 15 years ago
Posts: 581
Member since: Apr 2009
Sounds like the down payment size is the real problem in this case. Not the jumbo amount going down.
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Response by sledgehammer
over 15 years ago
Posts: 899
Member since: Mar 2009
That's good news! Prices will drop to reach out to buyers and this couple 10% downpayment will grow as a larger percentage while the nominal amount remains the same.
All good baby, all good!
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Response by bob420
over 15 years ago
Posts: 581
Member since: Apr 2009
Should not be able to buy a home with anything less than 20% down.
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Response by marco_m
over 15 years ago
Posts: 2481
Member since: Dec 2008
all depends how much the private market steps in. If money managers feel comfortable that motgages will now perform then there wont be any problems.
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Response by malthus
over 15 years ago
Posts: 1333
Member since: Feb 2009
"If money managers feel comfortable that motgages will now perform then there wont be any problems."
Just like 2006! Hurrah!
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Response by somewhereelse
over 15 years ago
Posts: 7435
Member since: Oct 2009
Sledge, I agree. It is funny how these pieces all spin this as horrible.
But, you know, folks paying LESS for their housing is a good thing.
Sounds like the down payment size is the real problem in this case. Not the jumbo amount going down.
That's good news! Prices will drop to reach out to buyers and this couple 10% downpayment will grow as a larger percentage while the nominal amount remains the same.
All good baby, all good!
Should not be able to buy a home with anything less than 20% down.
all depends how much the private market steps in. If money managers feel comfortable that motgages will now perform then there wont be any problems.
"If money managers feel comfortable that motgages will now perform then there wont be any problems."
Just like 2006! Hurrah!
Sledge, I agree. It is funny how these pieces all spin this as horrible.
But, you know, folks paying LESS for their housing is a good thing.