Are you wondering what is going on with the expected increase in the Conforming Loan Limit set to take place through the " Economic Stimulus Package" signed by President Bush last month?
A chock full of information was released today as to how the "Economic Stimulus Package" and increase in Conforming Loan Amounts for "High Cost Housing Areas" will be implemented into the banking system, which will affect banks offerings to consumers.
If you are wondering what areas HUD has distinguished as "High Cost Housing Areas" within your state on a county by county basis, check out this link (put in the state, without a county for all state results). Please note that the FHA limits have already increased and loans are being accepted using the new limits.
Projected dates of limit increases for Fannie Mae:
Fixed Rate Mortgage 30 and 15 Year...April 1st, 2008.
5/1 LIBOR Arm, Fully Amortized and 5/1 LIBOR ARM I/O...May 1st, 2008.
(These are the dates given by Fannie Mae, individual lenders may vary as to when they will have the Conforming Jumbo programs available to their brokers)
The new matrix for loans accepted by Fannie Mae with the increased limits (Conforming Jumbo Loans) can be found here.
Fannie Mae Guidelines for implementation can be found here.
There are some key things worth mentioning...
Single Dwellings Only (SFR, Condo, PUD)
Manufactured Homes are NOT ALLOWED!
Full Documentation Loans Only
45% Max DTI Ratio Allowed
Existing 2nd Mortgages must be re-subordinated
Cash-Out is NOT ALLOWED (Only minimum to pay existing loan, closing costs and max $2,000 out)
Full 1004 Appraisals Only
Loans must be uanually underwritten for now
Lender Paid and Borrower Paid Mortgage Insurance will be allowed
If you have a home in California on an Adjustable rate mortgage over the existing $417,000 Loan Limit and you would like to take advantage of a "Jumbo Conforming Loan" to save you from the high cost of financing on existing "Jumbo" pricing, feel free to give me a call. We'll go through your individual scenario to see if refinancing into a "Conforming Jumbo Loan" makes sense for you!
Oak Valley Mortgage
"You Find the Perfect Home, We'll Find the Perfect Loan!"