Coos Bay Real Estate: Looking For An Interest Only Loan? It’s About To Get Tougher
If you are looking to buy a home in Coos Bay you should be aware that trying to acquire an interest only loan is about to get tougher. Fannie Mae is changing the rules to make qualifying for interest only loans a more stringent process. The biggest difference will be the percentage that a home buyer will have to put down on his Coos Bay real estate transaction. Under the new rules a borrower will have to put down 30% of the home’s value to qualify for a Fannie Mae-backed interest-only mortgage.
Fannie Mae does not issue mortgages but buys them from lenders who do. If Fannie Mae doesn’t like what it sees it will not purchase the mortgages. The goal behind the qualification changes is to make sure that borrowers can afford to pay their mortgages. The bursting of the housing bubble has created the need for security, to avoid any repeat performance in the future. It is important to be prepared to secure a mortgage before buying a Coos Bay home.
Click here to read an article from CNN Money regarding interest only loans.
Contact Jan Delimont today, 541-290-1850, for more information about Coos Bay real estate and access to the Coos Bay MLS.
