FNMA announced today that it's raising its Loan to Value (LTV) limits.  This means that home buyers can put a lot less money down to buy their dream home. 

It all sounds great, right?  Fabulous news!

NOT Really!

Well it's not as it seems just like all the other announcements that have been made recently.  FNMA is trying hard, but we need to look at other factors.

• Yes... FNMA will allow you to get a loan with as little as 3% down. 
• Any loan amount or a combination of loans, if you're fortunate to find a bank that will offer a 2nd trust deed at this time, over 80% will require Property Mortgage Insurance (PMI).
• Word in the banking industry is that there are announcements from PMI companies indicating significant mortgage insurance retractions that impacted a host of programs - meaning that beginning immediately it will be much more difficult and more expensive to get PMI insurance.

If you are a home buyer in the Pasadena and surrounding cities, be prepared to still come up with a significant downpayment between 20% and 25% down.

There are investors that are offering programs with less money down, but they require FICO scores higher than 700 and at least 6 months of payments in reserves.

Mortgage industry guidelines and programs are changing on a daily basis. 

It is critical that buyers are speaking with a Mortgage Professional early in the process.

Sellers make sure that your Real Estate Agent doesn't just show you a pre-approval letter for a potential buyer, but gets on the phone and speaks with the lender to understand if the buyer is truly qualified and approved to purchase your home.

Be aware of the changes in the market place and stay tuned.  I'll be posting more information on mortgage industry changes as it becomes available.

In the meantime, if you have questions or would like me to address specific issues, please do no hesitate to comment here or send me an email at Irina@Irina4RealEstate.com

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