The Seattle area can be an ideal place for homebuyers to take advantage of Jumbo Loans, which can help extend funding for real estate in higher-priced markets.
New data from the Mortgage Credit Availability Index, courtesy of the Mortgage Bankers Association, shows that credit availability for these types of loans is higher than it has been in recent years. Specifically, it indicated that the index for Jumbo Loan credit availability jumped by 0.6 percent, and this is the sixth consecutive month that the index has increased, according to Scotsman Guide.
Jumbo Loans help homebuyers because they are non-conforming, which means they exceed the local conforming loan limit. These loans can be used in a fixed or adjustable rate and in general, have higher cash reserve and down payment requirements. Essentially, these loans allow a buyer with not much savings, but high monthly income a home loan option. If someone doesn’t have a large savings, they likely won’t be able to bring the loan amount down below the conforming loan limit with a large down payment – that is where a Jumbo Loan comes in. This is also for the buyer who may not want to utilize a piggyback second mortgage to expand their options.
With credit availability for these types of loans on the rise, buyers who are interested in utilizing a Jumbo Loan to purchase real estate in a higher-priced housing market like Seattle, or wish to upgrade to a bigger house, now may be a good time to speak to a loan officer about options.
At Element Mortgage, we make it a priority to educate buyers so they can make informed decisions about their financial future. Contact us today and we will take the time to understand your unique financial picture and assist you in trying to get pre-approved so that you can shop for listings with confidence.