Tampa Conventional vs Jumbo Mortgages and It's Impact on housing as discussed by Waterstone Mortgage's Diaz Duo with Andrew Duncan

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Tampa Bay's #1 Realtor and Expert talks with The Diaz Duo, Arnie and David Diaz of Waterstone Mortgage on  The Duncan Duo Real Estate Show on 970 WFLA about Conventional vs Jumbo Mortgages and how it is impacting the housing market.

According to David, the rates nowadays for Conventional and Jumbo Mortgages are very comparable if not the same depending on some factors like the credit score of the consumer. Jumbo loans start from $417,00 and up. 

Generally, a lot of consumers think that getting a Jumbo loan is more difficult than getting a Conventional loan which is not the case. This is because the media has done such a bad job in telling consumers just that. It might have been a couple of years ago but now, getting a Jumbo loan is just as easy as getting a Conventional loan with the same process and could even start with a 5% down payment as David says.

In Andrew's opinion, the $600-800k part of the housing market is actually the most unhealty part. It is really saturated and the list to sale price isn't that great. When you get the conventional mortgage, that part of the market is healthy. But if you go just above the Conventional mortgage, there's not as many buyers, homes are not selling as fast, and some of the buyers find it a little harder to get financing but some of it is because of their thought of getting a mortgage being harder so they pull away until they have enough money to be at a point that it will be easier to get a mortgage. They want to make sure that their mortgage application is a slam dunk that they hold off so they can get enough money for the down payment to get a conventional mortgage instead of a Jumbo loan. 

Arnie says that a lot of these consumers looking in that price range don't think that they would qualify for a Jumbo mortgage so they don't even begin to process. 

To get more Tampa Bay Real Estate news and advice from Tampa Bay's #1 Realtor, tune in to The Duncan Duo Real Estate Show on 970 WFLA - Tampa Bay every Sundays at 10 am.