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from Local Attorney, Michael H. Wasserman

Thursday, January 9, 2014

WSJ: Banks easing down payment requirements for JUMBO loans


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.