Conforming Loan Limits Continue to Impede Housing Recovery
The availability, or lack thereof, of mortgage financing has been one of the biggest factors impacting the pace of the housing market recovery. Loan limits on federally-backed mortgages have not kept pace with the rise in housing prices, particularly in high cost markets such as core-market California. For example, in Los Angeles County, the conforming loan limit is $625,000, which is insufficient to finance many homes in the submarket. The benefits to borrowers in qualifying for a federally-backed mortgage, include: lower downpayment requirements, as low as 3%; lower credit score thresholds, as compared to a private jumbo loan; and, lower interest rates.
About author
You might also like
Existing Home Sales Jump in March
Sales of existing homes moved up to a greater than expected seasonally adjusted annual rate of 5.19 million, an increase of 6.1% from February. Economists had expected a pace of
Mortgage Standards Set to Loosen
In what could potentially be a major catalyst for the housing market, new guidelines – meant to provide greater clarity as to when Fannie Mae and Freddie Mac can force
A Housing Pullback In 2017?
According to data compiled by the Federal Reserve Bank of New York, the 10-year term premium moved above zero for the first time in 10 months on the 14th of