Fewer people are turning to government loans for their home purchasing.
It’s a whole different story for conventional and jumbo loan credit, both of which saw increases to their usage in October, according to the Mortgage Credit Availability Index.
A decline to this index shows that lending standards are actually tightening, while an uptick is indicative of more widespread lending.
Borrowers are coming from all corners of the market. Buyers with less-than-ideal credit and individuals applying for a second-home loan took advantage of the increased availability to loan programs, including loans for more expensive homes.
Jumbo loans allow buyers to exceed conforming limits, which is helpful in higher-priced, more in-demand areas. As a non-conforming loan, it may allow buyers to still secure competitive interest rates and purchase the type of home they are looking for.
If you’ve been thinking about buying your first home, or you want to invest in a second home in Seattle, Tacoma, Renton, or somewhere nearby, a jumbo loan may be for you.
Depending on where you live, the jumbo loan limit will vary. Please check with us if you want to learn more about the loan options, requirements and other benefits.