Banks may be moving in the right direction
I recently wrote a post about the high down payment requirements for Jumbo Loans and in particular the effect it is having on Coconut Grove due to our high home values here. To recap that post, we are seeing down payment requirements of 30% for loans $417,000 and over.
But James Venney reports today that Wells Fargo has made its first move to relax down payment requirements. They are now offering up to 80% combined loan to value for well qualified buyers when the first mortgage product is a 15 year fixed rate mortgage. To read his post titled “Wells Fargo Lowers Down Payment Requirement…” click here.
Granted this is a very specific loan with terms that are mediocre but it might be the very beginning of banks starting to loosen their wallets. Once they start to lower the down payment requirements for all loan products, we will likely start to see a turn around in our market here.
James Venney is the top producing private mortgage banker in the South East with an affiliate of Wells Fargo. He is a licensed mortgage broker, certified mortgage planner and remains a state certified residential appraiser. He is the author of Juicy Estates, the #1 source for jumbo loans and luxury home news.