Blog of the Mortgage

It sure is a Happy Friday today!
Especially if you are in: Sacramento, Sonoma, Napa, Salinas, Contra Costa, Alameda et. al.

Well, we've all been waiting anxiously for this announcement and thankfully it has been given to us nice and early before the Holidays.

The FHFA (The newly formed conglomerate of OFHEO and whomever else in charge of the GSE's) -Federal Housing Finance Agency has announced the new Conforming Loan Limits today as well as the new High Balance Loan Limits for 2009.

Conforming for 2009 will still mean $417k for the majority of California. This despite the precipitous drop in Median price over the last year and a half.
This is great news for all of us (not that many thought that $417k would get lowered).
The even Better news here is the High Cost Limits as allowed under FHFA/HUD rules and FNMA/FHLMC.

What will be different this upcoming year as opposed to 2008 will be the fact that IF your loan is one of these High Cost areas it will qualify for a Conforming Price.
No More looking for the adjustment or different page of ratesheets.
As I have posted on my Education Station earlier in October FNMA has given us the New "High Balance" loans as a feature of Conforming instead of as a seperate Product.

So... Get the Advertising Ready. Spread the word to your Realtors in these Counties and then download the Press Release from FHFA and the High Balance Loan Limits from my Site below on Education Station.

Some Examples of MSA's that are going to Benefit from High Balance Loan Features:
Napa County - $592,250
Sacramento (Incl El Dorado/Placer/Sac/Yolo) - $474,950
Salinas (Monterey) - $483,000
S.F./Oak/Fremont (Incl. Contra Costa/Alameda/Marin/SF/San Mateo) - $625,500
Santa Clara (Incl. San Benito/Santa Clara) - $625,500

We ALL KNOW that first time homebuyers are going to be the driving force behind our production for the next 24 months as values continue to FALL in many more areas. We WILL BE ABLE to fund FHA Streamlines as refinances but unless the borrower is Rate & Term 10% Equity Refinances will continue to move out of reach for us in Northern California.

Speaking of moving out of Reach. Thanks to the MI Companies for not making it any easier for us to fund business!!
The newest Grid is out and posted on my Education Station.
Over 80% requires : 680/700/720 score and 45%/41% DTI??
YIKES!!!
Under 80% many are limited to 55% and only with Compensating Factors can we exceed this limit.


You'll need the following links to download forms & see updates

Education Station
Government Loan Programs