Required Downpayments Which Will Affect Tucson Luxury Homes on Conforming Loans Likely to Come Down June 1st

May 17, 2008 by Donna Anderson.

Fannie Mae and Freddie Mac are likely to lower the downpayment requirements in Tucson. Currently the minimum downpayment requirement for Tucson is 10%. That is likely to change to 5% downpayment with an effective date of June 1st.  Fannie and Freddie got a lot of criticism from the National Association of Realtors for chosing some areas as “declining” and therefore increasing the downpayment requirements. As a result, many realtors felt Fannie and Freddie were stigmatizing certain localities and leading to further downturns and problems in the local real estate markets that it noted were “declining”.  This should help homes that are listed for sale that are up to $438,000-where if one has excellent credit, excellent work history, etc, one can purchase a home with as little as 5% down.  Unfortunately this will not help  local purchasers who need jumbo mortgages (those over 417K). At the present time most lenders require a minimum of 15% down even with excellent credit scores.  If you would like me to refer you to an excellent mortgage consultant, give me a call at 520-918-2410.

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