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