Tag Archive for: conforming loans

Jumbo Rates – Almost 1% LOWER Than Conforming; Going For Jumbo!

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I actually blogged about why jumbo rates are so much lower than conforming rates in April, and here are some of the other reasons: (1) Jumbo loans have stricter guidelines so they are less risky; (2) Jumbo loans have tighter appraisal requirements – again impacting risk; (3) Big banks that fund or buy jumbo loans are desperate for yield and will take what they can get; and (4) Jumbo lenders want to establish relationships with well-off borrowers and will fund loans at a loss in pursuit of those borrowers.Read More

Conforming Loan Limits In California 2022

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  The U.S. Median Home Price has increased over 15% year over year – so it is no surprise that the Federal Housing Financing Agency (FHFA) has increased the Conforming Loan Limits significantly for 2021. Conforming Loan Limits refer to the maximum loan amounts that Fannie Mae and Freddie Mac will allow for financing for […]Read More

2022 Conforming Loan Limits Announced – Up By $100,000; Good or Bad?

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As we all learned on TikTok recently, the FHFA announced the new Conforming Loan Limits for Fannie Mae and Freddie Mac. I mention TikTok because that is where one of our superb marketing managers heard about it – and that was a reminder to me that TikTok isn’t only about bad dancing and lip-syncing. 😊 […]Read More

Conventional vs. Conforming vs. Government vs. Jumbo Loans; Bias For Action

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CINNABON STORY – BIAS FOR ACTION I heard this story on a podcast a few months back and just had to share it. When Cinnabon first started, they could only afford to lease very small spaces that required them to place their ovens in front; as a result, passersby could easily smell the aroma when […]Read More

How To Qualify For A Mortgage If You Owe Taxes

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OWING TAXES: BAD NEWS & GOOD NEWS I recently blogged about why borrowers should sometimes file extensions instead of tax returns and briefly touched on whether or not borrowers can obtain mortgages if they owe taxes. This blog expands on that topic, as many borrowers have substantial tax liabilities that can threaten their ability to […]Read More

Why Are Jumbo Interest Rates So Much Lower Than Conforming?

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Our jumbo rates are now sometimes as much as 1/2% lower than conforming (Fannie/Freddie) rates (and today is no exception). Today’s blog explains some of the reasons why. Stricter Qualifications Jumbo loans are often much “safer” than conforming loans from a risk perspective because jumbo guidelines are often much stricter with respect to credit, reserve […]Read More

2022 Conforming Loan Limits Increase

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U.S. median home prices continue to increase – so it is no surprise that the Federal Housing Financing Agency (FHFA) has increased the Conforming Loan Limits significantly. Conforming loan limits refer to the maximum loan amounts that Fannie Mae and Freddie Mac will allow for financing for one, two, three and four-unit properties. The two […]Read More

The High Cost of “Cash Out;” Delayed “Hot Season”

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DEFERRED DEMAND/PEAK HOMEBUYING SEASON IS NOW CNBC reported that “mortgage applications to purchase a home rose 5% for the week and were a remarkable 33% higher than a year ago.” America’s average home price also hit an all-time record high of $365,700, as buyers are now out in droves. This all corroborates what many of […]Read More

No VA Loan Limits! FHA and Conforming Loan Limits Way Up!

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VA LOAN LIMITS ELIMINATED – 2020 When “VA loans” first surfaced in 1944, the average cost of a house was only $8,600, making “loan limits” a nonconcern for the most part. As home prices rose, however, loan limits or maximum loan amounts were put in place just like they were for FHA and Conforming loans. […]Read More

Lenders Often Don’t Need Tax Returns

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It is a common misconception that lenders always need two years of tax returns for income verification. They don’t. If borrowers are “W2 Wage Earners” only, with no self-employment or side income of any kind, lenders often only need two years of W2s and a month’s worth of paystubs for income verification. These “W2 only” […]Read More

Can Rates Fall Again? Heck Yeah! New Conforming Loan Limits

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One of the primary reasons behind the recent rate increases is the expectation that Mr. Trump will deregulate the economy and bring about more economic growth. B/c of this expectation, investors have moved into stocks and out of bonds, pushing rates up 5/8% since the election. But, while the stock market loves “Trump the Deregulator,” […]Read More