Posts

Rent Vs. Buy Comparison – Follow Up To Responses; ADU Follow Up Too

Yesterday, I blogged about Rent Vs. Buy Comparisons In The Age of Inflation, and I got a surprising amount of feedback, including the following: “I put 5% down, and my housing payment is $500 lower than my Mom’s rent.” “You are not accounting for maintenance costs!” “Do you guys do ITIN Loans?” “Unsubscribe” 😊 5% […]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

Why I Love And Hate Freddie Mac’s Mortgage Interest Rate Surveys

Here is the link to Freddie Mac’s Mortgage Interest Survey Data. I recommend sharing this link often b/c it is one of the best sources available to see where interest rates really are. You might, however, also remind clients that Freddie Mac shows “average rates” only and that there are as many as 12 Factors […]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

Asset Loans; Qualifying With Assets Instead of Income

I touched on Asset Loans in December but I wanted to elaborate on them b/c they are such a great alternative for borrowers with substantial assets but limited documentable income. There are three basic types of Non-QM Asset Loans that we offer. Asset Depletion Loan: We simply divide total liquid assets by 120 months and […]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

Down Payment Options for Investment Properties

We often get questions about investment purchases, so we wanted to revisit a few unique things that everyone should know about purchasing investment properties. 1.) Lenders require a 20% down payment for loan amounts up to $625,500. Many people come to us under the impression that the minimum down payment is 25%, but Freddie Mac […]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