NorthJersey reports that higher down payments and rising mortgage rates for upper end homes starting Oct 1, 2011. That is the day when the Federal Housing Administration (FHA) is currently set expire, returning to a maximum of $625,000. That will place a $750,000 home, such as the one photographed, in the ‘jumbo’ loan category, where 20% down and higher rates would apply. The National Association of Realtors (NAR) and the National Association of Home Builders (NAHB) are among a coalition of organizations lobbying to extend the current FHA loan limit rate. Failure to do so could send prices downward on homes. FHA only requires 3.5% down on such homes, under the current guidelines. “There isn’t really an active secondary market where loans can be sold, aside from the government,” Keith Gumbinger of HSH, a mortgage information company, said.
(Photo credit: dbking Flickr CreativeCommons)