Good news this week that the loan limits for a conforming loan is increasing for 2019. It’s worth understanding what conforming loans are, what the changes are and how it may impact buyers in our real estate market.
What’s A Conforming Loan?
One of the most daunting things to think about when considering buying a home is how you will afford the down payment. Once you own a home, this usually becomes a non-issue as you use the equity from your existing home to help you. But when you’re going for your first home, this nut can be overwhelming. This is especially true on the Peninsula, where “starter homes” can cost upwards of $1,000,000 – that means a 20% down deposit is $200,000. That’s a lot!
Don’t despair! In addition to mortgage programs that require less than 20% down, there are also many ways that you can bring in money to get you to your down payment amount much quicker than you ever imagined. Let’s look at some of the more creative options:Read More