Once December 12th rolls around Fannie Mae will be loosening their lending parameters in a major way.
The major change helps borrowers come up with less money. I know. It’s just what you wanted, more competition in the already highly competitive Orange County housing market.
Home buyers will be able to purchase a primary residence home up to $625,500 in Orange County with as low as 5 percent down. For existing homeowners, they just need 5 percent equity to refinance to a fixed mortgage. Prior to this, any mortgage balance that exceeded $417,000 – referred to as agency high-balance or agency jumbo – needed to have 10 percent down. 
Investors will be all smiles too.
The existing Fannie Mae guideline of 35-percent down for rental properties is also being put to rest. Investors will be able to make a purchase with just a 15-percent down payment up with a $625,500 loan amount. Would you rather pay $110,382 or $336,500 for a down payment? You’ll have $226,000 more to work with.
Due to strong economic resurgence in the the best Orange County job market in twelve years, a big demand for housing has grown for businesses and their growing staff demands. In Orange County, it is difficult to find big blocks of commercial real estate space or fairly priced housing.
Putting more pressure on the lack of real estate are the countless people and businesses that just don’t move, making real estate inventories low even more. And real estate investors are vigorously buying up the limited number of properties that are listed for sale or unlisted.
The end result are rising real estate prices. Most experts on regional housing don’t see this declining anytime soon.
While there is construction going on throughout the county, it won’t provide enough of a huge improvement to the low inventory.
The situation is so challenging for many who are seeking to buy real estate in desirable Southern California.
Some buyers lose out on a deal because it not making a good enough offer. Be prepared to pay close to the asking price because there’s just a lack of inventory.
One advantage for home buyers and investors are mortgage rates are low and lenders are willing to lend. In addition, with 95% financing up to $625,500 they may move into that home they wanted a lot sooner.
Home selection is tight, particularly at price points that many would regard as slightly affordable. Five to seven years of staying the in same home has changed in OC which has resulted in low supply.