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
(732)223-1630 x102
Real Estate Mortgage Network
NJ Mortgages, New Jersey Mortgages, Mortgages in NJ, mortgage in New Jersey, Mortgages in New Jersey
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