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

Conforming Loan Limits In California 2021

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 one, […]Read More

2021 Conforming Loan Limits Increase

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 one, […]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

FHA Loan Limits Drop; 4 Unit Limit Is $1.2MM

Fannie Mae and Freddie Mac (conforming) loan limits will remain the same in 2014. FHA, however, will have lower limits in 2014. The table below sets out new limits. Note that most Bay Area counties and Orange and Los Angeles Counties have the maximum loan limit of $625,500 for a single family residence. Many outlying […]Read More

Conforming Loan Limits to Remain The Same

Fannie and Freddie announced that they will not change conforming loan limits for at least six months, and when they do, they will provide at least six more months of notice. This is very important b/c there were prominent rumors that the conforming loan-limits were going to come down in early 2014. Conforming loan limits […]Read More

“Windows Boarded Up? Can We Finance?” B of A – 83% Refis!

A Listing Agent called us Friday about an offer he received from one of our borrowers (our contact info is prominently displayed on our pre-approval letters so we get Listing Agent calls often). In this case, the Listing Agent was concerned about the fact that the windows were completely boarded up on the 2nd story. […]Read More

Unpermitted Space/Additions Are OK, But Limited

Un-permitted or unwarranted space and/or additions are allowed by Fannie Mae and Freddie Mac, but there are limits. The un-permitted space: (A) cannot be included in a property’s “gross living area;” (B) cannot be given value, or any value of significance in most cases*; (C) must be built/constructed in a “workmanlike manner**;” (D) cannot present […]Read More

Vernacular: Conventional, Conforming, High Balance, Low Balance, Etc.

Here is a brief vernacular review, as some of our clients have been confused lately. Fannie, Freddie, Conforming and Conventional loans are all the same thing. A loan is considered “conforming” if it “conforms” to Fannie and Freddie guidelines. Lenders split “conforming” limits into “Low Balance” and “High Balance” categories. Low Balance loans cap out […]Read More

Jumbo Market is Back – Good Thing for Many Reasons

We had another lender come by yesterday touting their “hot jumbo” products. This has been a frequent occurrence over the last year. We have Met Life offering portfolio jumbo loans, and about 25 of our mortgage wholesalers offering products from GMAC, B of A/Merrill and even Goldman Sachs now. These are true “Jumbo” loan products, […]Read More

Fannie Mae No Longer Backing High Balance? No Worries

The New York Times had a front page story today entitled “Federal Retreat on Bigger Loans Rattles Housing”. The article mentioned that Fannie and Freddie will no longer back loan amounts up to $729,750 starting this fall. This of course panicked some of our clients, intending to buy or sell in the near future. But, […]Read More

Co-Signer/Co-Borrower NOT Just for FHA; Freddie Allows Them

When discussing conventional or FHA loans, non-occupant co-borrowers, or co-signers, and blended ratios all refer to the same thing: Using a friend or relative to co-sign for a competitive owner-occupied loan even though that friend or relative will not live in the house. (Note: co-signer does not have to be a relative) Many people mistakenly […]Read More

Fannie/Freddie Going Away?; 203K Loans

There is tremendous pressure from pundits and politicians alike to do break ups or at least greatly reduce the size of Fannie and Freddie. This makes many of us nervous in the short run b/c Fannie, Freddie and FHA combined back up over 90% of the overall mortgage market. We say “short run”, however, b/c […]Read More

FHA is OK after Short Sale; Trusts, LLC, Corp – Not OK for Fannie

Remember once again that if a Short Selling Borrower stays current with his or her mortgage up to the date of a short sale, that borrower can immediately get FHA financing after the short sale. FHA formerly required two years of seasoning from the short sale; Fannie Mae still does. Sorry to beat this dead […]Read More

Irrational Underwriters – Unforeseen Conditions – Loan Buybacks – Paranoia

We take great pride in our ability to spot issues up front. BUT, unfortunately, we operate in an era of underwriter-paranoia. The reason: Fear of Loan Buybacks. Major investors and Fannie and Freddie all can and do demand “Buybacks”; they can force the lender that originally funded the loan to buy back a loan if […]Read More