On November 27, 2018 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 2019.
The maximum loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018. 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 2018 House Price Index (HPI) reported that house prices increased 6.9%, on average, between the third quarters of 2017 and 2018. The baseline maximum conforming loan limit in 2019 will increase by the same percentage.
For areas in which 115% 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 2019 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.
|For the Week Ending November 30, 2018|
Please enjoy this quick update on what happened this week in the housing and financial markets.
|Recent comments by Fed Chair Jerome Powell have markets questioning if we'll see policy rate increases in 2019, which could be good for mortgage rates.|
|Consumer spending increased by the most in 7 months in October. But underlying price pressures slowed, meaning inflation is less of a concern.|
|The economy grew 3.5% in the 3rd quarter, lower than the 2nd quarter's 4.2% expansion. Still, corporate profits reached a 6-year high.|
|Despite moderation, September's annual home price gains remain strong at 5.5%, as reported by Case-Shiller.|
|October's pending home sales dropped 2.6% from the previous month. Sales were down 6.7% compared with October 2017, for the 10th month of annual declines.|
|New home sales also fell in October. However, data last week showed an increase in building activity. A larger supply of available homes could bring more sales.|
Rate movements and volatility are based on published, aggregate national averages and measured from the previous to the most recent midweek daily reporting period. These rate trends can differ from our own and are subject to change at any time.
We all know the old line about location. But buying a home takes research, research, research, too.
You will want to determine
How much you can comfortably afford. The pre-approval process, which entails full documentation and credit check, is the best way to determine the numbers that are right for you. Early in your search, you can identify any potential hurdles and focus only on homes truly available to you.
How much cash you need to close. Knowing how much cash you'll need to close and, ideally, consolidating those funds into one account will help to prevent stress and ease the process later.
What kind of property you really want. Single family, multi-family, condo, co-op, Victorian, Colonial, Cape, split, ranch, cottage, cabin, teepee...home types and legal distinctions are plentiful. Whether you are open to several styles or have your heart set on only one, narrowing your search will save time and prepare you to act when the perfect home hits the market. Read our latest blog on "What's the Difference between a Primary Residence, Second Home, and an Investment Property".
Where you want to be and how long you'll want to be there. You’ll want to strike a balance between buying what you can afford and buying what will accommodate your needs for longer than just the first few years. Assess your plans for growing your family and how your income might grow to match. Planning ahead is especially important in today’s market, when trading up tomorrow may mean both a more expensive home and a higher mortgage rate.
How the process works. This is a time when the Internet doesn’t have all the answers. The process varies for many reasons, including area and custom. Generally, purchases include: Offer, Acceptance, Inspections, Contract, Loan Application, Appraisal, Title, Loan Approval, Closing/Funding and Moving In. Many little steps can fall in between, and the process won't always occur in a given order. It pays to speak with local experts early.
WHAT DOES GREENWAY LOOK AT TO DETERMINE IF A CLIENT IS QUALIFIED FOR A MORTGAGE?
The mortgage process can be daunting, especially the early stages of qualification! We ask many questions that may not seem to relate to a mortgage and request a significant amount of documentation. Guidelines have become more stringent to ensure the borrower is given a mortgage they can afford. Understanding the underwriting process can help ease stress and streamline the effort. In general, mortgage lenders like Greenway observe the 4Cs of borrower qualification – Credit, Character, Capacity and Collateral. Since every client’s financial situation and scenario varies, the 4Cs help Greenway determine if a particular borrower and property are mortgage-worthy.
You can get more information on qualification and the mortgage process by watching some of my other videos and blog posts. Check the show notes below for links to those.
I hope you enjoy and I am always ready to answer any questions you may have.
And when you're ready to start the home buying (or refinance) process be sure to reach out to me directly.
- Download our 4-Cs Infographic
- [VIDEO] Q&A with ETE (FB Link)
- [VIDEO] 5 steps to mortgage qualification (FB Link)
- (BLOG) Why Pre-Approval Should Be Step One for First-Time Home Buyers
- Get pre-approved: ecarvelli.greenwaymortgage.com/prequalify
- Mortgage payment calculator
- Erin's mobile app: ecarvelli.mortgagemapp.com
- With an on-the-go payment calculator and pre-approval request
- Or text: ETE to 36260
- Website: smt.greenwaymortgage.com
- GreenwayMortgageAtTheShore on Facebook.
- GreenwayMtgSL on Twitter
- LinkedIn: Erin Carvelli