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> Or, to give an example from the article — houses that are eligible for government guarantees (those below $750K-$1M) have appreciated similar amounts in the p
by thatfrenchguy 4y ago
> Or, to give an example from the article — houses that are eligible for government guarantees (those below $750K-$1M) have appreciated similar amounts in the past decade to those that's aren't eligible.
To be fair, they target a very different market. When you buy at 1M, you usually have assets and are required to put 15-20% down and have significant reserves.
- kelnos 4y ago> When you buy at 1M, you usually have assets and are required to put 15-20% down and have significant reserves. I don't think it's that different. The banks are still mainly concerned with the income-to-debt ratio, just like with conventional loans. The difference is that often people applying for jumbo mortgage loans will use assets and reserves to try to get the bank to worry less about the income-to-debt ratio. Also 20% down is the standard for a primary-home mortgage loan, regardless of amount. Sometimes that goes to 30% for non-primary-home investment properties, especially if the buyer is not a citizen or green card holder. Lower than 20% is possible, though more difficult to get since 2008, and you usually have to do unfortunate, costly things like obtain mortgage insurance. (We're talking US market here, since this article is about the US. Other markets presumably differ.)