Tag Archive for: conforming loans

2024 Conforming Loan Limits Way UP – At the Expense of Your Kids; Fed Lost Control of Bond Market?

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The FHFA (the agency that regulates Fannie Mae and Freddie Mac) just announced its new conforming loan limits, and the new limit for “high-cost” areas is now $1,149,825! This means that homebuyers can buy a $1.2 million home with only 5% down. This is amazing, as this used to be solidly in “jumbo territory” – with down payment requirements in the 20% range for competitive financing.Read More

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% this year in California, and the FHFA increased the Conforming Loan Limits significantly. Check out the limits here.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 […]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 […]Read More

How To Qualify For A Mortgage If You Owe Taxes

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Securing a mortgage can be a daunting journey, especially if you find yourself in the unique position of owing taxes. Many potential homeowners worry that their tax liabilities might stand […]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 […]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 […]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.” […]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 […]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 […]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, […]Read More