Mortgage Trends in Marin County

     As simply as possible…     Due to the price of real estate in Marin County the “Jumbo Loan” is the primary loan that is used. The guidelines offered here are in a state of flux due to the changing mortgage environment.  Due to the mortgage liquidity crisis, and the record number of defaults, the requirements or guidelines have become more stringent during the last couple of months.     A “Jumbo Loan” is any loan amount in excess of $417,000 and is also refered to as a “non-conforming loan.”   Conforming loans are any loan up to $417,000.  There are rumors that Fannie Mae will soon be increasing those limits in California     First time buyers will need at least 10% to put down, and have a minimum FICO score of 680.  There are other programs for buyers that are available.  Here’s a quick overview:Loan: $750,000       5% down      FICO Minimum: 660      3 months of reservesLoan: $1,000,000   10%down      FICO Minimum: 660      3 months of reservesLoan: $2,000,000   20%down      FICO Minimum: 700      3 months of reservesLoan: $3,000,000   20%down      FICO Minimum: 680     12months of reservesLoan: $5,000,000   30%down      FICO Minimum: 700     18months of reserves     As mentioned above, these guidelines are in a state of flux, and could change at any time.     Now, more than ever, a buyer needs a loan agent/mortgage broker that is experienced and knowledgeable. I recommend working with a local professional to assist you.  I’ve heard stories from various mortgage professionals about multiple offers (yes, they still happen) in Marin County and San Francisco, where the buyer made an offer with a Pre-Approval letter from an online lender, and those offers weren’t even considered in the process.     When you make an offer in today’s market, and the listing agent for the seller cannot directly call that lender if they have any questions (whatever time it may be/day or night), you are at a distinct disadvantage.      Any questions?Some of the information for this post was provided by:Dominic Pomilia      Manager, First Security Loan in Mill Valley      415-381-7015Anthony Dailley      Indy Mac Bank, Retail Lending Division          415-706-1495