New Conforming Limits- Here's what the Loan Programs Look Like So Far...

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Mortgage and Lending with Stearns NMLS #232164 CA BRE #01380812 BRE 01380812 NMLS 232164

What kind of loans can one get under the new Fannie Mae "New conforming Limit" or "Junbo Lite"?

Unfortunately, not "interest only" for fixed rate mortgages, that's too bad because the 30 YR Fixed w/ 10 Year Interest Only is an excellent product. 

 The Fannie Mae website, under "Eligible Product Types" lists the products below and it also states: "Eligible ARM plans To Be Announced"

 We'll see these products initially:

• Fixed Rate Mortgages, fully amortizing mortgages with 15- or 30-year term  (No Interest Only on these two programs)

• 5/1 ARM, fully amortizing mortgages with 30-year term, LIBOR index, 5/2/5 caps
• 5/1 ARM, interest-only (IO) for 10 years with 30-year term, LIBOR index, 5/2/5 caps

In another page on their site:

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0805.pdf

 there is a mention that more ARMS may be coming:

Note: Additional information about the origination (and delivery) of ARM loans, including specific ARM plans that must be used, will be forthcoming in a future announcement.

 Here is the Fannie Mae Jumbo Matrix for more details about the loan underwriting guidelines:

 https://www.efanniemae.com/sf/mortgageproducts/pdf/jumbomatrix.pdf

 As of this writing (3/12/08) most lenders have not yet released pricing on the "Jumbo Lite" programs, so stay tuned!

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Rainer
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R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Is it just me or is it taking a long time for these loan limits to make their way to the market?

 

Bob Mitchell

ValueList Real Estate Services, Inc. 

Mar 12, 2008 08:56 AM #1
Rainmaker
53,782
Mary Anne S. Daly
Stearns NMLS #232164 CA BRE #01380812 - Mill Valley, CA
Queen of the Loan & Radio Broadcaster

Well, they formally announced the new conforming limits last Thursday (3/6/08), so it's just been one week since the announcement. 

And hey, lenders are so busy issuing reprice alerts with the volatile market we've been seeing lately, maybe that's what's holding them up (LOL).

I'm hearing from lenders that they should have pricing within the next few weeks and we're guessing that rates will be in between Conforming and Jumbo, hence the nickname "Jumbo Lite."

Mar 12, 2008 12:20 PM #2
Rainmaker
53,782
Mary Anne S. Daly
Stearns NMLS #232164 CA BRE #01380812 - Mill Valley, CA
Queen of the Loan & Radio Broadcaster
I do have a lender pricing the Jumbo Lite today at almost 1 point over the conforming rate and .375 less than Jumbo.  They're calling the product "Conforming Jumbo". 
Mar 12, 2008 01:29 PM #3
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Rainmaker
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Mary Anne S. Daly

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