Jim Wold & Bob Wold
View condos under $350K
All Edmonds Homes, Condos, View and Waterfront Properties
Yes, Lenders are making it harder for Buyers to qualify for them as they retrench to recoup their(?) losses. That's all the more reason for Buyers to shop the market, they're all not alike.
Fannie Mae and Freddie Mac are private corporations (and government sanctioned monopolies) whose purpose it is to provide a continuous flow of funds for qualified home buyers, and of course to enrich their stockholders. They do it by buying “bundled” loan packages from home mortgage lenders, then re-packaging them into securities which are then sold to investors. They make their profit and the banks free up capital for new loans. OK, so that hasn’t gone so well lately, and things may change, but for now…the MFs establish the maximum loan amount, borrower credit and income requirements, down payment, andsuitable properties. They review and reset new loan limits every year. The 2011 conforming loan limit for first mortgages is $417,000 for single family homes.
The Federal Housing Administration (FHA). which is part of the U.S. Dept. of Housing and Urban Development (HUD), administers various mortgage loan programs. FHA loans have lower down payment requirements and are easier to qualify than conventional loans. FHA loans cannot exceed the statutory limit. Go to FHA Programs page to get more information.
VA loans are guaranteed by U.S. Dept. of Veterans Affairs. The guaranty allows veterans and service persons to obtain home loans with favorable loan terms, usually without a down payment. In addition, it is easier to qualify for a VA loan than a conventional loan. The U.S. Department of Veterans Affairs does not make loans, it guarantees loans made by lenders. VA determines your eligibility and, if you are qualified, VA will issue you a certificate of eligibility to be used in applying for a VA loan. VA-guaranteed loans are obtained by making application to private lending institutions.
State and Local Housing Programs
Many states, counties and cities, counties and cities provide low tomoderate housing finance programs, down payment assistance programs, orprograms tailored specifically for a first time buyer. These programs are typically more lenient onthe qualification guidelines and often designed with lower upfront fees. Also, there are often loan assistance programsoffered at the local or state level such as MCC (Mortgage Credit Certificate)which allows you a tax credit for part of your interest payment. Most of these programs are fixed rate mortgages and have interest rates lower than the current market rates.
Jumbo Loans
Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as "jumbo loans". Because jumbo loans are bought and sold on a much smaller scale, they have a higher interest rate than conforming loans.
Loans above the maximum loan amount established by Fannie Mae and Freddie Mac are known as "jumbo loans". Because jumbo loans are bought and sold on a much smaller scale, they have a higher interest rate than conforming loans.
