fnma: Conforming Loan Limits are UP Again.
- 11/26/19 09:59 AM
JUST ANNOUNCED TODAY, 11/26/2019: The Federal Housing Finance Agency (FHFA) today announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2020. In most of the U.S., the 2020 maximum conforming loan limit for one-unit properties will be $510,400, an increase from $484,350 in 2019. Median home values generally increased in high-cost areas in 2019, driving up the maximum loan limits in many areas. The new ceiling loan limit for one-unit properties in most high-cost areas will be $765,600 — or 150 percent of $510,400. This is a clear sign of a healthy Real Estate market … (0 comments)
fnma: FNMA announced DU adjustments. Higher risk buyers may be affected.
- 06/05/19 12:40 PM
Back in March FHA announced they would be adjusting underwriting making it more difficult in certain situations to get an approval. (you can read about that here: https://activerain.com/droplet/5j25 ) Just today we we received a "Lender Letter" from Fannie Mae (LL2019-06) with similar changes after review of loan performance. We anticipate we will see more negative Desktop Underwriting (DU) findings when this goes into effect July 20th. While we cant be 100% sure, we anticipate "ineligible" DU findings when there are multiple high risk factors. For example: Higher DTI’s combined with higher payment shock. Higher payment shock combined with a lack of savings. Lower FICO combined with … (0 comments)
fnma: FannieMae Loan Limits- A little history
- 11/29/18 09:39 AM
An Historical view of the FannieMae limit With all the chatter this week with loan limits increasing I thought it would be fun to take a look back. But first- lets talk about the new limits: We have a significant increase in the base loan limit from $453,100 in 2018 to $484,350 in 2019. Since I am Licensed in NJ and most of my market is considered a "High Cost Area" that limit is 150% greater. We see that limit jump from $679,650 up to $726,525 for a single family home. We are accepting loans at the increased numbers IMMEDIATELY. so no need to wait … (0 comments)
While each of these bullet points are a topic unto themselves, I though it would be important to touch upon the positive changes we have seen over the past year that have made it easier to be approved for a mortgage. We have seen the reversal of some guidelines originally implemented during the financial crisis. With property values and loan performance at more stable levels, the “over the top” requirements as a result of the crisis are being re-evaluated. FannieMae is leading the way with Freddie closely following and GNMA lagging behind a bit:
Student Loan Debt: ¨ Income Based repayment is OK, even … (2 comments)
fnma: FNMA & FHLMC Limits Increase for 2018
- 11/29/17 09:15 AM
We have some more good news from Fannie and Freddie. Both have increased their loan limits significantly for 2018, The second year in a row after sitting stagnant for almost 10 years. This is a clear sign that housing prices have increase across the nation. The general loan limit for 2018 is up to $453,100 for a single family home which is a big step up from 2017's $424,100. Even better news is the high cost limit is up as well, just keep in mind that not all areas are eligible for the "high cost" figure. while most of NJ does fit into the high … (0 comments)
fnma: Have you heard of "Trended Credit Data"?
- 07/22/16 07:28 AM
Have you heard of “Trended Data”? FannieMae’s Desktop Underwriter will require Trended Credit Data with the release of DU 10.0 on September 24, 2016. (This was originally scheduled for June 24th but was postponed) Trended credit data will show if a client carries a balance every month or if they pay their credit cards in full at the end of the month. The reasoning is all about risk. Research has shown that borrowers that have never exceeded their limit are 75% less likely to be delinquent than borrowers that exceeded their limit in the past year. Borrowers who pay off their credit card … (4 comments)
Here are a few examples of some recent changes that are making it easier for buyers. Fannie Mae has had a few significant changes recently that signaled a further loosening in the mortgage guidelines. Some of the bigger changes are: Non-occupant co-borrowers to help an owner occupant qualify are now allowed. Now more closely mirroring Freddie Mac and FHA. An owner occupant can go to a 95% Loan-To-Value on high balance loans to purchase a home. This means that in high cost areas where you formerly could borrow up to $625,500 with a minimum down payment of 10% down; you … (2 comments)
FNMA has announced the discontinuance of the HomePath and HomePath Renovation products. Any FNMA owned property, wishing to use the current enhancements such as no MI and no appraisal, must have the contract of sale executed on or before October 6, 2014. All loans with a fully executed contract dated on or before October 6, 2014 can use the existing features, although the loan will need to close sometime in January/February 2015 (final date to be determined). The HomePath Program also allows for 10% down investment property with NO PMI. This will also go away leaving only the … (2 comments)
The current Fannie/Freddie limits range between $417,000 up to $625,500 in higher cost areas. The Federal Housing Finance Agency is planning to reduce the maximum size of mortgages backed by the agencies in early 2014. There is no word of how much the caps will be reduced but even a $25,000 cap is anticipated to have a significant impact on lending with the biggest impact being for home buyers in the middle/upper middle priced markets. In 2008 limits were increased to help provide liquidity in the markets where private financing was just about … (0 comments)
fnma: FNMA is Requiring additional Insurance on Most Condos
- 06/05/09 05:06 AM
This is a bit of old news that most are NOT aware of is new insurance requirements for condo projects The end of 2008 FNMA came out with Announcement 2008-34. which touched on many condo issues. The one that will potentially affect ALL of us that sell or finance condominiums is: (straight from the announcement) Hazard Insurance for Units in Attached Condominium Projects Including 2-4 Unit Projects
The Selling Guide, Part XII, Chapter 5, Insurance Requirements require that lenders verify that hazard insurance for all condominium projects with attached units, including two- to four- unit projects, covers fixtures, equipment, and … (5 comments)
JUST ANNOUNCED TODAY, 11/26/2019:
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