Exciting changes are on the horizon for homebuyers! Starting in early 2025, Freddie Mac and Fannie Mae are making updates that could simplify the homebuying process for your clients. These changes aim to make purchasing a home faster, less expensive, and more accessible—especially for first-time buyers.

Here’s a closer look at what this change means and how it could benefit homebuyers:

What Is an Appraisal Waiver?

An appraisal waiver allows buyers to skip the traditional in-person home appraisal during the mortgage approval process. Instead, automated tools determine the home’s value based on recent sales and other market data.

Currently, appraisal waivers are available to buyers with an LTV ratio of 80% or lower. But starting in early 2025, this threshold will increase to 90%.

How Buyers Benefit from the New 90% LTV Ratio

1. Lower Down Payments, No In-Person Appraisals

With the increased LTV threshold, buyers can qualify for appraisal waivers with just 10% down. This means fewer hurdles for buyers who may not have a large down payment saved.

2. Faster Closings

Skipping the appraisal process can shave days—or even weeks—off the homebuying timeline. Automated underwriting ensures buyers can move into their new homes more quickly.

3. Cost Savings

By avoiding the in-person appraisal, buyers could save $500 or more in fees. This money could be used for other expenses, like moving costs or furnishing their new home.

4. Reliable and Safe Process

Even without a physical appraisal, lenders will rely on accurate data like credit scores and recent comparable sales to ensure the waiver process is thorough and safe for buyers.

Why This Change Is a Win for Buyers

The new appraisal waiver guidelines address some of the most common challenges buyers face, especially first-time homebuyers. Lower upfront costs and streamlined closings make it easier for more people to achieve their dream of homeownership.

If you’re planning to buy a home in 2025, this update could make the process smoother and more affordable.

Get Prepared for 2025

As these changes roll out, staying informed will help you make the most of this opportunity. Have questions about appraisal waivers or how they could impact your buying experience? Greenway Mortgage is here to help. Let’s discuss how this new policy can benefit you. Give us a call 888-616-9885 or email us at leads@greenwaylending.com.

The Fed announced another hike.

As expected, the Fed raised policy rates by 0.25% at their February meeting. This is the smallest increase of the eight made in the last 11 months.

More "interesting" is the Fed's signal regarding future increases.

The Fed statement released after the meeting hinted that ongoing rate increases are anticipated before inflation is brought to the Fed's target of 2.0%. Investors were hoping the Fed would back off of that sentiment.

Please Note: Mortgage rates are impacted by market forces beyond Fed actions and will not necessarily change at the same pace as the Fed's moves. They often shift before the Fed acts, in anticipation of their changes.

Should the Fed's news change your home financing plans?

If this is your time to purchase a home or access cash from equity, don't let rates stop you.

Let's find a way to work within the framework of the current environment. Options like hybrid ARMs, buydowns and HELOCS can help.

Background on the Fed:

• The Federal Reserve Board (the Fed) controls the federal funds rate and discount rate, which are charges for overnight loans from bank to bank or from the Fed to member banks.
• The rate was lowered to near zero in March 2020 in response to the pandemic. These historic measures are now being reversed.

This is the eighth increase since March 2022.

Bottom Line:

Don't let interest rates hold you back from making a move or accessing cash. We're still closing loans every day!

There could be savings on the table for home buyers in 2023!

The Federal Housing Finance Agency (FHFA) has just increased the amount of money that can be borrowed through a standard home loan to more than $726K. In some areas, the limit is even higher. The new limits will take effect in 2023.

This is great news for buyers and owners alike.

• Buyers may be able to borrow more money through a conventional, typically lower-rate loan.

• Owners may be able to refinance their "jumbo" loan to a lower rate conforming loan and possibly drop mortgage insurance, too.

• Combining (or avoiding) smaller 1st and 2nd mortgages may now be an option.

• The increase reflects the growth in values over the past year and reaffirms your decision to invest in a home.

Here are the specifics about the change:

• The standard loan limit, also known as the conforming loan limit, rose by just over 12% to a maximum of $726,200 in most areas.

• The percentage increase is equal to the national appreciation average over the last year.

• This is the 7th year in a row that the FHFA has raised the limit, after a decade of no increases. The limit has risen more than $310K over seven years.

Curious about limits in your county or other areas? Follow the link below to check. We'll update it as limits change, so bookmark it for future reference if you'd like.

If you have questions about what this change could mean for you, please reach out. And if you have friends who may benefit from the news, please pass it along. The Greenway Team would be honored to help them too!

The Federal Housing Agency (FHA) has just increased the amount of money that can be borrowed through its mortgage programs by more than $51k in most areas. In high cost locations, the increase is even greater. New limits will take effect in 2023.

The increases will allow more borrowers to take advantage of FHA’s benefits:

• Low down payment options
• Lower total cash-to-close requirements with gift or seller contributions
• More lenient and streamlined refinancing
• Ability to combine purchase and rehab financing
• In some high-cost areas, higher loan limits than conventional mortgages

Here are the specifics:

• In most areas, the FHA loan limit will be $472,030, a 12% increase over 2022’s limit of $420,680.
• In high-cost areas, the limit moves to $1,089,300, a 12% increase over 2022’s $970,800.
• In some lower-cost areas or those with higher costs of construction, limits will vary.

Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.

New 2023 Loan Limits Effective January 2023

On November 29, 2022, the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2023.

The maximum loan limit for one-unit properties will be $726,000, an increase from $79,000 from $647,200 in 2022.​ Release.

The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.  

FHFA third quarter 2022 House Price Index (HPI) reported that house prices increased 21.21%, on average, between the third quarters of 2021 and 2022. The baseline maximum conforming loan limit in 2023 will increase by the same percentage.

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit. 

A list of the 2023 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here.

Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.

2023 Conforming Loan Limits Effective January 2023