Miami Homebuyers Seeing Lenders Ease Up Rule

by Isaac Benmergui, Esq on April 1, 2013

money puzzleMortgage lenders are loosening up the purse strings and lending money again to Miami homebuyers. Banks are reporting a noticeable uptick in the number of fixed-rate low down payment loans with little more than 3-5 percent down (mortgage insurance is still required, however).

Credit rules are being relaxed as lenders approve a greater number of low down payment loans, and government-sponsored mortgage lender Fannie Mae purchases more of them. In past years, 20 percent down on a home purchase loan was the only way to be approved for mortgage. Fannie Mae’s rules allow as little as 3 percent down, with private mortgage insurance. During the peak of the housing crash obtaining insurance was difficult, if not impossible. At that time the only low down payment loan was through the Federal Housing Administration, the FHA, the government’s loan insurer. As a result of buying a large share of the down market, the FHA took on huge losses. As the FHA now faces a shortfall of $16 billion, it raised premiums and will so again in 30 days.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

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