Tag Archive for: fannie mae

2023 Conforming Loan Limits Surge To Over $1 MILLION! Some Interesting Perspective

1994’s Limit Was $203,150 When I got into the mortgage business in 1994, the conforming loan limit was $203,150. Adjusting for inflation, that is about $408,000 today (almost exactly 2x the 1994 amount) The median house price in 1994 was about $130,000, while it is about $455,000 today (about 3.5x the 1994 number). Today’s maximum […]Read More

Fannie Mae Made Rates WAY LOWER for First-Time Homebuyers!

In mid-November, both Fannie Mae and Freddie Mac made homebuying ridiculously less expensive for many, if not most first-time homebuyers! And – I was remiss for not blogging about it sooner. 13 Factors That Impact Your Interest Rate! I often blog about the 13 Factors that impact someone’s mortgage rate – reminding readers that there […]Read More

Missed Rent Payments Are OK – Or Are They?

WOULD YOU DO THIS LOAN? It was sometime in 2006 when a rep I knew well from the now defunct Washington Mutual (WaMu) called me to ask if I personally would “do the loan” that I submitted. My answer was of course not. It was a 90% combined loan-to-value (LTV) loan (1st and 2nd mortgage […]Read More

Rent Payments & Rental Income To Qualify

Here is some important info about using rental payment history and rental income to qualify. GREAT NEWS: “DU” USES RENT PAYMENTS NOW On the good news front, Fannie Mae announced last month that its automated underwriting system (DU) will now take into account rental-payment-histories, to make it easier for renters to become homeowners. Here is […]Read More

2022 Conforming Loan Limits Increase

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

Fannie Mae Re-Slams Mortgage Industry With 1/2 Point Refi Fee

In August, I blogged about Fannie Mae Slamming Refi Borrowers With A New 1/2 Point Fee. And then later in August, I blogged about Fannie Mae Yanking Its 1/2 Point Fee In Response to Industry Pressure. But, Fannie only postponed its refi fee until December 1st. So all refinance loans sold to Fannie Mae and/or […]Read More

When 1.99% Is A Bad Deal; Why Rates May Not Fall Further

1.99% – YAY!!!! OR NOT…. (LOOK AT THE FEES) Several lenders were touting their 1.99% interest rates recently, and we were getting emails from agents and borrowers alike asking about the “amazing rates.” But, that rate is not amazing when you look at the fine print, and almost all lenders, including JVM, can offer it […]Read More

Fannie & Freddie Breaking Off From Government Control?

INTEREST RATES COULD SHOOT UP AT ANYTIME We often remind both borrowers and agents that interest rates are generally expected to remain low for some time, but that does not mean they cannot shoot up unexpectedly. Our point is that both buyers and current mortgage holders should take advantage of today’s low rates now before […]Read More

I Caught My Dog Issuing Pre-Approvals (True Story)

I made the horrible mistake of teaching my dog Kevin how to run Fannie Mae’s automated loan approval software, known as Desktop Underwriter or “DU.” It was easy to teach him b/c all he has to do is gather info from borrowers and input data. BUT, THIS is why it was a huge mistake! Without […]Read More

Higher Rates Won’t Hurt Housing Prices Per Fannie Mae Economist

Several Realtors have asked us recently about the effect of higher rates on housing prices. This is b/c their own clients are concerned about buying now and risking a decline in values. According to Fannie Mae’s Chief Economist, Doug Duncan, rate increases usually do not portend a decrease in values for several reasons. 1. If […]Read More

5% Down Conventional Condo Purchase up to $625,500; Owner Occ. Ratio; Lender Credit for Closing Costs

This is another reminder that Fannie Mae now offers 95% Loan-Value-Financing for High Balance loans up to $625,500 (we alluded to this yesterday too). This is especially important for the many condo buyers with limited cash. Most condo complexes are not FHA approved, so most higher-end condos were off limits to buyers with limited cash. […]Read More

Fannie, Freddie, Agencies, GSE’s; What Are They? Differences?

Fannie Mae and Freddie Mac are Government Sponsored Enterprises (GSEs) or “Agencies” that buy loans from mortgage banks and either hold them in their portfolios, or package them into “Mortgage Backed Securities.” They were created by Congress as ostensibly private companies to provide liquidity to the mortgage market. They are now effectively controlled by the […]Read More

Fannie’s HomePath Financing Died In 2014, and Nobody Noticed

Fannie Mae offered special financing for its REO properties via its Homepath program for about five years. It came out with big fanfare in 2009 b/c it offered special financing with only 5% down, no PMI, etc. Few of our borrowers ever opted to pursue Homepath financing, however, b/c the rates were so high. Homepath […]Read More

Jan. 26: Big Day – FHA MI Drops; CU Appraisal Rule In Effect

January 26th, 2015 is a big day in the mortgage industry. 1. FHA “monthly” MI is lower (down to 0.85% for most loans) for all case numbers ordered from today on. Per HUD, expect delays in getting case numbers. 2. Fannie’s much feared new Collateral Underwriting (CU) Rule is now in effect. This is a […]Read More

3% Down for Condos; Don’t Need FHA Approval for Condos!

Fannie Mae’s new 97% loan will finance condos! This is huge b/c in the past Fannie would only go to 95%. This means that condo complexes no longer need to be FHA approved for low-money-down financing (for loan amounts up to $417,000). Fannie actually is better than FHA b/c the down payment requirement is less […]Read More

Rental Income = 75% of Gross Rent (Again)

For years, Fannie Mae and most lenders allowed borrowers to use 75% of the actual rent on a lease agreement for “qualifying income” (as long as the rent did not significantly exceed market rates). After the 2008 meltdown, Fannie tightened up and correlated only to the income reported on a Schedule E on a tax […]Read More

Fannie and Freddie Are Not the Same; “GSEs.”

Fannie Mae and Freddie Mac are Government Sponsored Enterprises (“GSEs”). Their role is to securitize mortgages or to help bundle them up to sell on the secondary market. This role effectively keeps interest rates lower. “Conforming” or “Conventional” loans up to $625,500 are underwritten to Fannie’s and Freddie’s guidelines. Fannie Mae and Freddie Mac offer […]Read More

95% & 90% of FUTURE VALUE Construction/Rehab Loans

Fannie Mae now offers Construction Loans up to 95% of the future value (after improvements) of a property for low balance loans of $417,000 or less. For high balance loans (to $625,500), the maximum loan-to-value is 90%. These are straight construction loans underwritten to Fannie Mae “rate and term” guidelines. They allow for most any […]Read More