More Money Required for Mortgages over $500k

All the buzz about the new down payment rules. I’ve had many questions already today about the changes. Stay calm and mortgage on. Here’s what the changes are:

1- If you are buying a home less than $500,000 rules remain unchanged at 5% down payment.

2- For $500,000-$1,000,000 you will need 10% on just the amount you borrow on every dollar over $500,000 Example: Mortgage of $600,000 will require $25,000 for the first $500,000 and $10,000 for the extra $100,000).

3- When is this happening? Feb 15th 2016.

My recommendation to you:

1- Most of the time lenders will adopt the new rules several days or a week or so in advance, so don’t wait for the last possible day!
2- Call, text or message me with questions.
3- A pre-approval will not get you in on the changes, you will have to have an accepted offer on a home before then.
4- If this is you and you know you’ll be purchasing this spring and would like to get in before, contact me for a recommendation on a Realtor that can get you moving! (LITERALLY)