Archive for the 'Buyers' Category
Fannie Mae Temporary High Balance Loan Limits Expire September 30, 2011. What does it mean?
Posted by Russ Schreier | Currently 1 Comment »
Provided by Russ Schreier, Director of Sales, Samuel Scott Financial Group
Fannie Mae loan limits for high-balance mortgage loans are scheduled to expire on September 30, 2011. Barring congressional actions, the “temporary” loan limits now in place will expire on that date and loans with mortgage note dates on or after October 1, 2011 will be subject to the “permanent” limits. Many of our clients and agents have questions regarding the expiration. The following are some of the most frequently asked questions.
Are the loan limits definitely expiring? What would it take for them to get extended or changed from the permanent loan limits?
Congress would have to take action to extend or revise the temporary loan limits, which were originally put in place through the Economic Stimulus Act of 2008 and have been extended through a series of additional legislative actions to provide support to the mortgage market during the U.S. housing crisis. The most recent extension for Fiscal Year (FY) 2011 occurred last fall under a continuing resolution. The February report to Congress by the Departments of Treasury and Housing and Urban Development (HUD) stated “the Administration recommends that Congress allow the temporary increase in limits that was approved in 2008 to expire as scheduled on October 1, 2011 and revert to the limits established under HERA [Housing and Economic Recovery Act].” As such, Fannie Mae does not expect any further extensions.
What will happen in 2012? Could the permanent loan limits go down?
As a result of the permanent authority for HCA loan limits established under HERA, the Federal Housing Finance Agency (FHFA) is required to evaluate loan limits annually, and revise limits accordingly. The first set of HERA loan limits (a.k.a. “permanent” loan limits) was established for calendar year 2009 based on the median home prices for the HCA Metropolitan Statistical Areas (MSAs) provided by the Federal Housing Administration (FHA)/HUD. While there have been median home price declines over the past three years, FHFA followed a policy to “not permit declines relative to the prior HERA limits.”
Several months ago, FHFA and Fannie Mae published the permanent loan limits applicable to loans originated on or after October 1, 2011, and which are acquired by Fannie Mae in 2011. Therefore, no changes are expected to those permanent limits between October 1, 2011, and December 31, 2011. FHFA has not indicated whether it will continue its policy of not permitting declines in HERA-based limits beyond 2011. If FHFA does not maintain its policy of not permitting declines in the HERA-based HCA loan limits, 2012 loan limits could decline from those that will apply in the fourth quarter of 2011.
FHFA has not yet published the HERA-based limits applicable to loans Fannie Mae will acquire in 2012, nor has it indicated when it will do so. However, standard practice has been for FHFA to release the upcoming year’s limits in mid-November each year.
Are you expecting any eligibility and pricing changes related to this expiration?
None is expected at this time.
How many borrowers are affected by the expiration of the temporary limits?
According to Fannie Mae a relatively small number of borrowers needing to finance loans are in the affected range. Certain markets will be significantly affected. Data gathered by the FHFA on acquisitions of these loans by the government-sponsored enterprises (GSEs) in 2010 showed significant clustering of the larger-balance mortgages in California and a small number in other states. According to the FHFA data, roughly 6 out of 10 of loans originated with loan amounts above the permanent limits but meeting the temporary limits came from California. Massachusetts, New York, and New Jersey collectively accounted for a further 20 percent. Twenty-six U.S. states had no purchase by the GSEs of the higher-balance loans.
The expiration of the temporary loan limits will certainly affect the interest rates a borrower will pay on a loan over $417,000. The current spread between a Fannie Mae 30 year fixed and a Jumbo 30 year fixed is around .6%. In the summer of 2008 the average spread was .2%. This spread is likely to narrow over time as credit conditions improve. The most important factor will be the expansion of jumbo product into the market place which we will cover in our next post.
The expiration of high balance loan limits coupled with the historically low and artificially deflated interest rates all point to this being one of the best opportunities to purchase or refinance a home.
Related Posts: Buyers, Mortgage News, Real Estate News
Panoramic Views in Lovely Eastview
Posted by Mira Bozanich | Leave A Comment »
Just Reduced! Serene, Panoramic Views of City Lights, Mountains & Sunsets in lovely “Eastview”~~Most Popular Sapphire Model you’ve been waiting for~~Spacious Master Suite on the First Level~~two BR’s & Loft/Office/BR 4 Upstairs~~Stunning & Inviting, Light & Bright Floor Plan features: Cathedral Ceilings, Spiral Staircase, Sunken Living~~Gourmet Cook Kitchen offers Abundance of Cabinetry, Center Island & Breakfast Nook~~Step out to Large Yard w/Raised, Covered Patio to enjoy Spectacular Views~~PUD~~Prop. U & BB apply.
Open House on Sunday, May 22nd from 1:00-4:00 PM.
Offered at: $589,900
Take a look at the virtual tour: http://www.flashitfirst.com/gallery/17742_Bellechase_Circle_vt1.html
Please Contact:
Mira Bozanich
[email protected]
(858) 449-0590
www.mirasandiegohomes.com
Related Posts: Buyers, Elegant Homes, Find A Home, Great Real Estate Deals, Home Loans, Homeowners, homes for sale, Investment Properties, New Listings, Open Houses, Picture Perfect Productions, Picture Perfect San Diego, Poway, Rancho Bernardo, Real Living, Real Living Lifestyles, San Diego, Schools, Senior Living, Video & Virtual Property Tours
Adrienne’s San Diego Upcoming Events Calender for April! Rodeo, Classic Cars, Festivals and More
Posted by Adrienne Dimeno | Leave A Comment »
Cajon Classic Cruise
April 13, 2011
Cruisin Grand Escondido Every Friday Night!
April 15, 2011
Fallbrook Paws in the Park
April 16, 2011Lakeside Western Days Rodeo
and Parade
April 15 – 17, 2011
April 15, 2011Taste of Hillcrest
April 16, 2011
April 30 – May 1, 2011 Scrapbook Expo
April 29 – 30, 2011 Del Mar Nat’l Horse Show
April 21 – May 8, 2011 Sharons Ride Run Walk for Epilepsy
April 17, 2011 La Jolla Shores 5K
April 17, 2011 La Jolla Half Marathon
April 17, 2011 Oceanside Days of Art
April 16 – 17, 2011 Coronado Flower Show
April 16 – 17, 2011 Fallbrook Paws in the Park
April 16, 2011 Lakeside Western Days Rodeo
and Parade
April 15 – 17, 2011 Head to Toe Women’s Expo
April 15 – 17, 2011 Del Mar Antique Show
April 15 – 17, 2011
and Auction
April 16, 2011
Fallbrook Avocado Festival
April 17, 2011
Cajon Classic Cruise
April 20, 2011
April 22, 2011
April 27, 2011
Cruisin Grand Escondido
April 29, 2011
Adams Avenue Roots Festival
April 30 – May 1, 2011
Related Posts: Activities & Events, Area Information, Buyers, Find A Home, homes for sale, Real Estate News, San Diego
Looking for a way to distinguish your property from others on the market?
Posted by Chad Basinger | Leave A Comment »
Buyers, are you holding off on that next real estate move for fear of getting laid off? Sellers, are you not distinguishing your home from all your competitors? Read on for a program that could very well help buyers and sellers move forward towards reaching their goals.
With the ongoing uncertainty in the overall economy and continued difficulty in getting financing when it comes to buying a home, it is not entirely shocking that some buyers are still sitting on the sidelines. In particular, for someone who is concerned about a potential layoff in the near future, they may decide to hold off on that big purchase. Fortunately, the California Association of Realtors (C.A.R) has a program that pays a home buyer’s mortgage if he or she is laid off. This particular program is called the Home Payment Protection Program (HPPP),
The program covers both first-time and repeat buyers for 12 months from escrow closing and provides up to six mortgage payments up to $1,000 or $1,500, depending on the coverage level the seller chooses. A seller can choose to pay $200 for six mortgage payments up to $1,000 or $275 for six mortgage payments up to $1,500.
The Home Payment Protection Program is offered by REALTORS® to sellers at the time of listing as an added incentive to prospective buyers. The program is paid for by the seller and is completely optional.
While the thought of losing your job is not exactly a comforting thought, at least there are some programs in place to alleviate this concern as a buyer. For those sellers out there wishing to distinguish themselves from other sellers in the marketplace, this could very well be the one thing that makes the difference.
Chad Basinger, REALTOR®, CPA, CFP®
858-997-3704
Related Posts: Buyers, Contracts & Negotiations, Find A Home, Marketing, Motivational, Moving Tips & Advice, New Listings, San Diego
Open House This Sunday from 1-4 at 18010 Avenida Alozdra in Oaks North!
Posted by Nancy Canfield | Leave A Comment »
Stunning townhouse in Oaks North located at 18010 Avenida Alozdra,
Rancho Bernardo
This property offers cathedral ceilings in living room and dinning room. Kitchen is spacious with lots of counter space and cabinet space, indoor laundry room, and cozy patio opens onto greenbelt . Replaced polybutylene pipes with copper piping in 2006. Buyer to verify all before COE. Props U and BB apply.
Priced at $334,999
Come take a look at the open house on Sunday, April 3rd from 1-4!
Please Contact:
Nancy Canfield
www.nancycanfield.com
(619) 871-9333
[email protected]
Related Posts: Agent Services, Buyers, Condos & Townhomes, Find A Home, Golf, Homeowners, Homeowners Associations, homes for sale, Open Houses, Rancho Bernardo, Senior Living
