Speaking to my colleagues here at the office, the loan guys as I refer to them, trying to get a grip on how easy it is to get a loan here in the Valley. For those of us who are looking at conforming loan amounts below $417K you can expect to get a rate of 4.75% for a 30 year fixed, that’s amazing. For those who think buying is tough right now they really need to look at this. You could get in for as little as 3.5% down, you’ll pay PMI but it may be worth it to take advantage of today’s prices. Minimun FICO is around mid 600’s for FHA guidelines, everyone else is expecting 720 FICO.
For those of you who need a higher loan amount the next level is up to $625K, that will get you a single family home or a nice town home in areas like Santa Clara and Campbell, or even Cupertino and Sunnyvale, yes I said it, Cupertino, Sunnyvale, townhomes of course. Pricing changes 5.25% for a 30 year fixed, still not bad, same FICO guidelines as above. Down payment here is a minimum 10%, still PMI.
Jumbos, anything over $625K is now considered a Jumbo loan and the pricing changes. No FHA underwriting here. Not as many players in this space, however there are buyers out there for larger homes or homes in more affluent areas and they are still selling $1 Million and $2 Million dollar homes. The pricing for these loans are at 6.75% with on 1 point for a 30 year fixed. This is the only product where a 5 year adjustable loan is lower than the 30 year fixed option, you could lower the rate to 5.75% no points with a 5 year fixed option. Here you will need 20% down and in some cases with higher loan amounts upto 25% minimums.
Prices are down, money is cheap again… for some folks.