Are you thinking of living in Chevy Chase, MD? If you already live in the area, are you thinking of putting your Chevy Chase home up for sale? If you answered yes to either question, it’s a good idea to act now. If you wait too long, real estate market conditions may soon make it more difficult for Chevy Chase homebuyers to qualify for a loan.
It looks like loan limits will start decreasing soon. Starting in 2014, a conventional loan over $417,000 may be considered a Jumbo Loan. Jumbo loans are problematic for a few reasons. They typically have higher interest rates, difficult underwriting and significantly larger down payments.
Although interest rates are down now, there’s no guarantee that the rates will stay as they are now. Higher interest rates will make it more difficult for homebuyers.
The “Ability To Repay Rule” could make it much more difficult for lenders to provide homebuyers with loans, if enacted at the start of next year. This Rule will affect homebuyers who have a debt to income ratio that’s more than 43%.
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Let me know if you’re interested in buying real estate around the Chevy Chase area. Our agents can also provide you with information on either buying or selling your home. Contact us today to learn more.