Jumbo Loan limits to drop by October 1, 2011
For existing and future Scotts Valley and Santa Cruz County homeowners, if you plan to apply for a new jumbo loan or refinance an existing one, better do it now, before October 1st.
On that date, any jumbo conforming loan (a mortgage between $417,000 and $729,750) will drop from $729,750 to $625,500.
With Northern California’s expensive housing market, many folks will be affected.
What this means to you:
Expect to pay half a percentage point more than you would for a conforming loan within Fannie and Freddie limitations. as well as more equity will be required i.e. 25% or 30% versus the standard 20% for conforming loans or with an FHA loan, as little as 3.5% down.
Want to find out about your financing options? Need to buy a home? Contact Pamela Papas, Real Estate Broker, at consultants@papasgroup.com or phone 831-515-3009.
