Right now, rates on conforming loans (up to $417,000, or 80% of a $521,000 property) can be had at roughly 6% for a 30-year fixed rate, with one point to the lender at closing. However, in San Francisco that's not going to get you more than a smallish condo or a TIC (tenants in common) property.
If you're looking for a single-family home, you need to know about conforming Jumbo and Jumbo loans So, what's the diff?
The conforming Jumbo is for loan amounts between $418,000 and $729,000 (or an 80% loan on a 912K purchase price). However, the limits on conforming Jumbos are being lowered to $625,000 at the end of 2008. Presently, conforming Jumbos will run you 6.25% for a 30-year fixed rate with one point to the lender at close of escrow.
The Jumbo includes loans over $729,000. They’re currently available for loans of up to $1.1 million at around 6.75% for 10 years fixed, going to variable for years 11 through 30. The standards on these loans are even more stringent than those of lower value loans, and they also require at least a point at close of escrow.
While the financing arena is certainly tougher than its been for years, it is still possible to finance a home. (Do I need to mention that I'm just the person who can help you jump through lenders' hoops?)
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1 comment:
Thanks for the advice. But the news these days scares me, is this really a good time to be thinking of buying? What do you think?
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