Jumbo Mortgage Guidelines to Change This Year – Mission Viejo Real Estate

Home / Uncategorized / Jumbo Mortgage Guidelines to Change This Year – Mission Viejo Real Estate

Jumbo Mortgage Guidelines to Change This Year – Mission Viejo Real Estate

WASHINGTON — 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 down payment of 10 percent or less.

This will also apply to Mission Viejo Real Estate and all of Orange County since we are included in the list of high-cost areas.
What does this mean to Mission Viejo home buyers? Be aware that if wait until after October 2011 to buy a home with a loan amount over $625,000 you’ll likely be looking at a higher mortgage interest rate. And if you, like the Schreibers, are trying to keep your down payment around 10%, you may be looking at a smaller house that you can swing under today’s guidelines.
What does this mean to Mission Viejo home sellers? You may be looking at a smaller pool of qualified buyers if you list your home for sale in the price range above$700,00 after October 2011. Questions? Call me – 949-678-3373

Posted on Mission Viejo Real Estate-Mission Viejo Homes For Sale

Leave a Comment

Contact Me

Have a question or comment? Send me an email and I'll get back to you, asap.

Not readable? Change text. captcha txt

Start typing and press Enter to search