High Cost Region!!

Do You Live in a High-Cost Region?
Not everyone will benefit from these temporary loan limit increases, but experts estimate that areas in at least 17 states will be able to take advantage of it. So how do you know if your neighborhood qualifies?

A high-cost region is typically determined by the median value of its homes. The median value is the specific price that is halfway between the least expensive and most expensive home sold in an area over a given period of time. Do not confuse this with the average home price. The median home price is the price at which half of all buyers bought more expensive homes and half of all buyers bought less expensive homes.

If that sounds confusing, don't worry. It is the responsibility of the Department of Housing and Urban Development (HUD) to determine, within the next 30 days, what the median home price is for regions across the country. But I don't want you to wait until HUD makes its determination; give me a call to discuss if you might benefit from this new legislation.

Generally, a borrower's income may not exceed 100% of the area median income for the borrower to be considered eligible for MyCommunityMortgage^TM but Fannie Mae makes exceptions to this limit for particularly high-cost areas:

•·         120% of AMI in the Portland-Vancouver-Beaverton, OR-WA MSA

•·         120% of AMI in the Seattle-Tacoma-Bellevue, WA MSA

•·         135% of AMI in the Boston-Cambridge-Quincy, MA-NH MSA

•·         140% of AMI in the State of California

•·         165% of AMI in the New York-Northern New Jersey-Long Island, NY-NJ-PA MSA

•·         165% of AMI in Dutchess, Orange, and Ulster Counties (New York)

•·         170% of AMI in the State of Hawaii

For more information, see Borrower Income Limits in the Selling Guide, which is available through AllRegs' Online Fannie Mae Single-Family Guides.