Tag Archive for: fannie mae

Fannie & Freddie Supporting Agent Commissions, But…Has Anything Changed?

FHA allows buyers to finance their upfront mortgage insurance premium (MIP) equal to 1.75% of the loan amount. So, while FHA loans are ostensibly 96.5% loan-to-value, they are effectively around 98.2% loan-to-value loans because almost every FHA loan includes the financed upfront MIP. Read More

ADU/In-Law/Guest Cottage Financing – Part Deux

I have been blogging about ADUs repeatedly over the last few years because states and local governments are so aggressively encouraging their construction – as a way to solve our […]Read More

Lower Rates = More Competition For Buyers – Which Is Something Buyers Don’t Understand; Fannie Mae’s Confusing Buyers Survey

83% of consumers do NOT think now is a good to buy a house! But, at the same time, Fannie Mae’s Home Purchase Sentiment Index just hit its highest level since March of 2022! Fannie’s Home Purchase Index simply reflects consumers’ current and forward-looking views of overall housing market conditions.Read More

Mortgages After Bankruptcies – Easy to Get! Jobs Report Nonsense Again

Mortgage rates shot through the roof this morning in response to a very strong jobs report! This is exactly what I predicted would happen in my blog yesterday, as the official BLS jobs reports always come out stronger than expected - particularly in January - before getting revised downward in later months.Read More

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

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

2024 Conforming Loan Limits Just Announced!

The Federal Housing Finance Agency (FHFA) has announced an $40,350 increase in the baseline conforming loan limit for mortgages backed by Fannie Mae and Freddie Mac to $766,550 in 2024. This represents a 5.5% increase from the 2023 conforming loan limit of $726,200.Read More

When Huge Lots Kill Transactions; What Are The Rules & Solutions?

Mortgage lenders won’t go near lot loans for many reasons – and here are a few: (1) regulators, investors, and creditors prohibit them from doing lot loans; and (2) lot loans are much riskier – which is a main reason why regulators, etc. won’t let mortgage lenders do lot loans. Lot loans are riskier because land values are more volatile; land is much less liquid as collateral; it is harder to generate income from land; zoning issues are more prevalent; and more expertise is required to understand and exploit land values in general.Read More

Government Shutdowns – Much Ado About Very Little; The Impact of Shutdowns!

It looks like we averted another government shutdown at the 11th hour over the weekend. While shutdowns do impact people within the government, they do not actually impact the rest of us that much. The media like to make a big deal of out shutdowns because their biggest impact is often making one of the political parties look worse in the eyes of voters, and thus impacting elections.Read More

Why So Many Lenders Have Rates Below the National Average (it’s not what you think)

We got the JOLTS report yesterday and the ADP report today, and among other things, we are seeing: (1) slower job creations; (2) the creation of part-time jobs instead of full-time jobs, making new jobs data much less rosy; (3) the double counting of new jobs because of the way openings are posted online; (4) “quiet cutting” where employers shift employees into lower-paying jobs; (5) much less job switching; and (6) less confidence in employers, based on employee surveys.Read More

Rates Hit 23-Year High (I Hate It When That Happens)

Mortgage interest rates rose yesterday largely in response to the release of Fed Minutes – and they are now at levels not seen since 2000. Here are a few interesting […]Read More

The Appraisal Type Everyone Should Avoid at All Costs! 5 Appraisal Types

Today’s blog was written by JVM’s Appraisal Manager, Taylor Allen. She orders our appraisals, manages our appraisal team, carefully curates and manages our huge stable of appraisers, reviews appraisals, rebuts appraisals, […]Read More

Fannie’s Greatest Hits; First-Time Buyers Don’t Get Hit! Watch For Hidden Points!

In February, I blogged about Fannie Mae’s Greatest Hits, referring to all of the things that can impact an individual’s interest rate. These things include credit score; loan amount; property […]Read More

What Are Fannie Mae LLPA Waivers And How Do They Work?

If you’re in the market to purchase a home for the first time, you may have come across the term “LLPA waivers” in relation to Fannie Mae and Freddie Mac loans. Understanding LLPA waivers is crucial for potential homeowners to make informed decisions and potentially save on mortgage costs. In this blog post, we’ll walk you through the key aspects of LLPA waivers, explaining what they are, how they work, and how you can benefit from them.Read More

Refinancing Is Now Way More Expensive – Or More Difficult

This short IG video, titled “Refinancing Is Going To Be More Expensive Than Ever” was making the rounds on social media recently. We were getting questions, so I decided to blog about it. It is a good video, but the gentleman is only about half right.Read More