It's popular these days to support the concept that our US government provides help for homebuyers who want good loan rates on conforming limits of under $417K and for those needing jumbo rates on loans up to $729K.
Last year's mortgage meltdown put an end to Wall Street securitizing jumbo loans where the street bought large mortgages and resold them to investors. Investment banks like Bear Stearns and Lehman Brothers were caught in that and collapsed, carrying the super jumbo lending market down with them.
Conforming Loans ~ US government agencies Fannie and Freddie now have conforming loan limit at $417K, which are insured by the FED.
Jumbo Loans ~ Jumbo loans between $417K and up to $729K in California and some areas can also be insured by the U.S. government.
Super Jumbo Loans ~ Home loans over $729K are SUPER JUMBOS, not insured by the US government and difficult to get. These are not covered by US govt market lenders Fannie Mae and Freddie Mac. Super jumbos are sometimes offered by servicers at wholesale institutions, insurance companies, and some Wall Street conduits for lenders. Super Jumbo loans doing the boom were a great deal for homebuyer and cost little more than conventional loans under $417K. Now the spread between conventional loans rates and super jumbo loans is almost 2% higher in some areas.
~ BUYERS OF EXPENSIVE HOMES DESERVE BETTER U.S. GOVERNMENT MORTGAGE AND PURCHASE MONEY LOAN RATES.
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1. People who buy homes at $1 million more deserve the same US government and taxpayer help for their purchase money loans as those who need loan of $417K or less.
2. People who buy homes at $1 million or more tend to be high bracket taxpayers who pay a larger percentage per capita of US personal income taxes.
3. People who buy homes at $1 million or more were were not at fault for the financial institution collapse and mortgage meltdown of 2008.
4. People who buy homes at $1 million or more are mostly willing to get qualified for their loans the old fashioned way with documentation and history to support.
5. The slowest selling US home markets are those with prices above $1 million, and these need to be stimulated to improve our economy and inspire job growth.
Perhaps there are more reasons to support this argument.
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Harrison K. Long, Explore Group Properties, Coldwell Banker Previews, Irvine, CA.
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