Congress appears ready to pass a bill that will push FHA Loan Limits back to their previous “high balance” limits that expired in September. Conventional Loan Limits remain the same. The FHA increase is good news not only for high cost areas, but also for low cost areas where FHA limits had fallen below Conventional loan limits. Solano County is a great example of this.
Contact us if you need to see the new FHA limits for particular counties.
HARP 2.0 Guidelines were released as well. HARP 2.0 applies to borrowers with loans held by Fannie and Freddie only. The new guidelines allow borrowers to refinance no matter how “upside down” they might be (LTV used to cap at 125%). In addition, the credit standards were lowered somewhat, 2nd mortgages can be subordinated (CLTV is irrelevant) and there are fewer date constraints with respect to when the initial mortgage is taken out.
There is nothing too groundbreaking here. “Upside Down” borrowers with decent credit and verifiable income should contact us to see if they are eligible to refinance.
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