There has been some miss-information flowing around in Active Rain so I wanted to toss out a few bullet points to clear up any confusion.

Here are the Important Tid-Bits to remember:

• Base Conforming limit for most states remained $417,000
• Conforming Jumbo Limit dropped to $625,500
• There are still loans available above $625,500... Just not backed by Fannie or Freddie
• Rates Above $417,001 are higher than below.
• FHA limits remained mostly unchanged, but each county is different, so you need to check locally.
• FHA has the same Max "Jumbo" limit of $625,500 with the amount over $362k being at a higher rate (362k is the "high cost" area normal FHA limit)
• FHA has increased its Minimum Down Payment to 3.5% down
• FHA only requires 1 appraisal, UNLESS it is a Cash Out Refinance above 85% of the appraisal, at which point you can go up to 95% but need 2 appraisals.
• Fannie and Freddie both are continuing to adjust the "add-ons" for interest rate. Credit score, LTV, Property type, occupancy, loan amount, etc all factor into interest rates.
• PMI costs are UP (Private Mortgage Insurance)
• FHA changed the MIP (Mortgage Insurance Premium), but it is Much cheaper than most Conforming PMI.
• FHA does not have the interest rate add-ons, making it more affordable for many buyers than a conforming loan
• FHA is probably going to have a minimum credit score shortly, it is programed into some underwriting engines already... That minimum will probably be 580.
• Yes there is money to lend!  You just need a buyer with a job that qualifies.
• Stated income programs still exist for larger down payment buyers with Great credit.
• Freddie announced yesterday that we hit the lowest rates for a 30 year mortgage since they have been keeping records, 5.01% is the national average for a 30 year mortgage.

That is a few of the things I wanted to toss out to be sure every one was up to date.

Have a great weekend!

Rob

Robert Rauf

(732)223-1630 x102

Real Estate Mortgage Network

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