Fhfa announces increase in maximum conforming loan limits for fannie mae and freddie mac in 2017

#Fhfa announces increase in maximum conforming loan limits for fannie mae and freddie mac in 2017 mac#

If you have any questions or would like to learn about additional changes giving borrowerвЂ™s more flexibility when qualifying, please let me know. Many still think that at least 5% must come fro m borrower's own funds. This is helpful when borrower does not have savings of their own.

#Fhfa announces increase in maximum conforming loan limits for fannie mae and freddie mac in 2017 mac#

Borrow er is not required to make any contribution from their own funds. The FHAвЂ™s announcement followed news that the Federal Housing Finance Agency would increase the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2017 for the first time in a decade, according to a Dec. Funds to close: This is not a new change but just a reminder: For primary residence: a ll funds for closing (down payment, closing cost, prepaids, reserves) can be gift funds. If the borrower documents that the value of the asset is at least 20% more than the funds needed for the borrowerвЂ™s down payment and closing costs, no documentation of liquidation is required.Д¤. Stocks, Bonds, and Mutual Funds : One hundred percent (100%) of the value of the asset is allowed when determining available reserves. Conversion of Principal Residence Requirements: If a borrower is retaining their current primary residence and converting it to an investment property (while buying another primary residence) and wants to use any rental income from the property for qualifying, you are no longer required to have 30% equity in the property.ДЈ. Going forward, revolving accounts that are paid down to zero at closing may remain open and no monthly payment needs to be included in the DTI ratio.Дў.

Revolving Debt: If borrower is paying off a revolving debt (credit card), the borrower also had to close the account in order to exclude that payment from the debt-to-income ratio (DTI). home prices.Fannie Mae has implemented several changes to their underwriting guidelines which makes it easier for borrowers to qualify. The increase is good news for hopeful homebuyers around the country who can now utilize higher purchasing power to counterbalance rising U.S. These conforming loan limits delineate the size of mortgages Fannie Mae and Freddie Mac can buy or guarantee. Here, the baseline loan limit will be $679,650 for single-family homes, although loan limits may exceed this figure in specific areas. The FHFA also notes that вЂњspecial statutory provisionsвЂќ dictate different loan limits for Alaska, Hawaii, Guam, and the U.S. The new loan limit for single-family homes in these areas will be $679,650. home price.вЂќ This is just the second time the FHFA has increased the loan limit since 2006.ДЇor high-cost areas-where 115 percent of local median home values exceeds the baseline conforming loan limit-HERA requires that the maximum loan limit be a multiple of the areaвЂ™s median home value and establishes a вЂњceilingвЂќ on that limit of 150 percent of the baseline loan limit. The conforming loan limit is growing by this same percentage because the Housing and Economic Recovery Act (HERA) mandates that the вЂњbaseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. The 2018 maximum conforming loan limit for single-family homes will be $453,100, up from $424,100 in 2017.ДЄccording to the FHFA, home prices have increased 6.8 percent from the third quarter of 2016 to the third quarter of 2017. The Federal Housing Finance Agency (FHFA) has announced that it will increase the conforming loan limits for mortgages that can be sold to Fannie Mae and Freddie Mac in 2018.