Update April 9, 2009: On February 23, 2009 FHFA announced that according to the American Recovery and Reinvestment Act, 2009 loan limits will be revised to the 2008 loan limits. As of this update, we’re anticipating the higher revised limits to take place at any time (1-Unit for this area will return to $567,500). FHA has all ready implemented the loan limit changes. This serves as a reminder that any information on the internet regarding mortgages can be out dated in a fairly short amount of time.
This morning, the Federal Housing Finance Agency has announced the 2009 conforming and jumbo conforming loan limits for 2009. The conforming loan limit will remain at $417,000. The jumbo conforming was reduced to 115% of median home value from 125%, with the passage of HR 3221. Based on the new lower estimated home values, the 2009 conforming jumbo limits for King, Snohomish and Pierce Counties are:
- 1-Unit: $506,000
- 2-Unit: $647,500
- 3-Unit: $783,000
- 4-Unit: $973,100
Some banks and lenders have all ready began to send notices that they will stop accepting locks for the 2008 conforming jumbo limits ($567,500 for 1-unit) effective later this month. This is done so that once the loan is sold and closed to Fannie or Freddie, the loan limit is compliant. (You may not have until the end of the year to take advantage of the $567,500 loan limit).
More to follow…including updated rates this afternoon.
I started this post with the plans of announcing the pricing for the Jumbo-Conforming mortgages…however, I just don’t have enough facts to do so yet. It looks like Fannie Mae’s add to rate is 0.25%…however, lenders will most likely have their own add to rate as well. (So far, I’ve only seen a jumbo-conforming rate from one lender which was in the high 6 range for a 30 year). As soon as I have more data, I’ll let you know.
Here is some basic information from Fannie Mae regarding temporary Jumbo-Conforming mortgages (loan amounts from $417,001 – $567,500 for King, Pierce Snohomish Counties):
Purchase Mortgages/Principal Residence
Fixed Rate: Max LTV/CLTV 90%. Minimum Mid-Score LTV>80%: 700 / LTV = or <80%: 660.
ARMs: Max LTV/CLTV 80%. Minimum Mid-Score: 660%
Limited Cash Out Refi (Limited cash out means you can recieve a maximum of $2000 cash back at closing).
Fixed/ARMs: Max LTV 75%/Max CLTV 95%. Minimum Mid-Score: 660
Cash out refinances are not eligible
(this includes paying off a second mortgage with a refinance, which is considered “cash out”). Update 4/7/2008: Fannie Mae just issued clarification on this guideline: they will now treat paying off a purchase money second as a limited cash out refinance.
*Full doc only.
*2 months reserves (PITI) are required for primary residence.
*45% maximum DTI ratio.
*ARMS are qualified on the fully amortized PITI at the higher of the note rate or fully indexed rate.
*Limited to four financed properties, including the borrower’s principal residence.
Remember, this coach turns back into a pumpkin on December 31, 2008.
Lenders will start pricing “jumbo conforming” anytime…stay tuned!