by Michael H. Wasserman, Attorney at Law
The Wall Street Journal reports that lenders are offering lower down-payment requirements to lure more borrowers wishing to purchase more expensive homes.
Many small lenders, (primarily community banks and credit unions), are now willing to cover jumbo loans with 5 percent to 10 percent down payments. In Chicago, jumbo loans are those that are $417,000 or higher.
These opportunities are being made possible by mortgage lenders wishing to increase market share as real estate property values are on the upswing coupled with the re-emergence of mortgage insurance companies will to insure against the risks of borrower defaults.