Condo Purchases to Require 10% Down Starting March 9th!!!!!

I got an email today from an agent at a condominium development in Queen Anne regarding mortgage insurance companies changing their down payment requirements.

Starting on March 9th, mortgage insurance companies will require 10% down on any condo purchases. According to the email some banks have already made the switch to this requirement.

What does this mean to you? If you're a buyer considering a condo purchase in the near future, if you get locked into a contract after March 9th you will have to come up with extra funds in order to get approval for the loan.

Contracts that are locked in and approved for a mortgage insurance certificate by March 9th will be exempt.

So, for those of you who are thinking about buying but don't have 10% down...it's time to stop thinking and start moving. The difference could be tens of thousands of dollars (for a loan of $250,000, that's $12,500 more that you would have to come up with).

Now what's the cause of this? Each county has a market classification. Depending on the level of distress in the markets, the classifications rise in increments of 5%. Those in Classification One only requires 5% down. Whatcom County and King County are currently both in Classification One. Whatcom County will move to Class Two (10% down required) on February 24th.

There is still a way around the 10% down, though. FHA loans, who aren't affected by the MC, are still offering 3.5% down. The development you are considering must be FHA approved, though, so be sure to ask your buyer's agent to check this.

On a happier note, there is now an up-to-$8,000 tax credit available to first time home buyers.

Don't have an agent? Call or email me...I'd be happy to help you find your perfect condo (or home!).

Amy Kizaki
Buyer Specialist
Seattle PowerSearch Team

206.384.7169 direct
amy@seattlepowersearch.com