When mortgage loan gatekeepers Freddy Mac and Frannie Mae replaced the standard 3% down conventional mortgage loan with a 5% standard last Saturday, many viewed the switch as a tightening of underwriting policies and increased constriction within the industry.
“The more equity you have in your home, the less chance of foreclosure having a negative impact on the lender/investor,” explains Premier Lending’s, Trevor Bellows; “When we see policies and guidelines tighten like this, it’s usually a product of poor performance—foreclosure—of this type of loan”
With the economy on the up-swing, such measures are being taken to prevent such catastrophic economic downfalls as Americans have been familiar with in recent years.
The housing market historically slows during the winter season and, “Mixed with the strengthening economy, we shouldn’t see too much of a difference in the local housing market,” Bellows comments on the new rate standards.
Boulder’s Premier Lending LLC still has “low down” options. Still acceptable is a 3% down conventional mortgage while in conjunction with CHFA. FHA is still an option too, at 3.5% down. As always, buyers should get pre-qualified before starting their loan search. Buyers should understand what they can afford as well as what their total payment will be when the house is paid off.
RE/MAX of Boulder is a joint venture partner of Premier Lending LLC. The Premier Lending LLC office is conveniently located in the RE/MAX of Boulder office at 2425 Canyon Blvd in Boulder. Stop in to see if you qualify for a low down payment mortgage loan or with any real estate needs; we would be happy to help in any way we can.