Thursday, February 20, 2014

Good news for those who want to buy and are short on cash

With the implementation of the Frank-Dodd legislation in the mortgage industry, the number of qualified buyers were expected to decrease from the tightened loan qualification standards.

There is some good news however, that will aid a certain number of buyers in purchasing that dream property.  Several mortgage insurance companies are now insuring 95% conventional loans with 100% of the funds needed coming from gift funds.  The mortgage insurance premiums are no higher than normal in terms of the standard LTV and credit score differences.

So gone are the days when a buyer obtaining a conventional loan (up to $417,000) needed 5% of their own funds to purchase, unless putting 20% down.

If you would like to buy or sell a home, call me today.  I would love to assist you in the transaction.

                                                              Carla Brooks

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