Buying a home in any part of the country is extremely difficult because of the lending crunch and how it has impacted home buying tendencies. My wife and I truly have friends who put down close to thirty bids before one finally stuck. Because lending is so scarce in some instances, older people are putting down cash bids and buying up homes at a discounted rate. It is almost frightening for any homeowner who does not truly have $500,000 on hand!
In searching for homes and condos, my wife and I wandered by a condo that was new and had been sitting there for quite a while unoccupied. We had seen the place three months ago, but decided it was too expensive for what our price range was. When we returned recently, we discovered two great pieces of information. First, we discovered that the prices of the different units had gone down due to the without of need. We had also discovered that instead of a management company showing the units, and independent jumbo mortgage lender was showing us around all of the units. By independent, I average this was not a subsidiary of Bank of America, Wells Fargo or JP Morgan Chase.
Since this was an independent jumbo mortgage lender, they had many more lending options than just FHA loans or traditional 20 percent down payment loans. This lender was willing to discuss jumbo loans, and was already willing to offer a lower interest rate for jumbo mortgage rates. While we nevertheless do not have 20 percent to pay for a down payment, we realized we could go with a 10 percent down payment and get a jumbo loan with a great interest rate.
We felt like people who had accidentally discovered a buried treasure. So many of the homes and established condos we looked at throughout our city had limited lending options for us. The price range we are looking out does not always fit into the FHA loan threshold and our credit scores are not always a good fit for traditional home mortgage loans. We have been looking at jumbo loans for quite a while, and we sort of accidental it.
If you want to find different lending options in your area, here’s what we did:
1. Look for a new development, such as condos, town homes or housing developments. These areas are sometimes desperate to unload their homes and so go by a lender to show off the units or houses.
2. Looking for new developments that have been on the market a while. Developers want to recoup their investment, which method they will be willing to look at different lending options instead of global lenders who have tight underwriting guidelines, loan thresholds or other road blocks. A jumbo mortgage lender will often be more willing to work with you to get the deal done.
If you follow these steps I think you will unprotected to exactly what you are looking for in addition.