Thanks to Laura Triplett from Suntrust for the update on what the heck is going on out in the mortgage industry for our area. Laura is a very trusted lender in the area and if you are interested in speaking with her I have included all of her contact information at the bottom of her article. -Steve
What we know today (but things could change):
The bill sets the FHA and conforming (FNMA/FHLMC) loan limits to the leseer of $729,750 or 125% of an area’s median home sales price. If 12% of an area’s median sales price is below the current conforming loan limit of $417,00, don’t worry; the $417,000 still applies. In others words, you will not be any worse off than you ar today. The area median home price is determined by HUD and is based, in part, on the National Association of Realtors Data for each MSA.
The FHA and conforming limit changes are meant to be temporary and are set to expire on December 31, 2008 (unless extended, which could happen)
The new limits will apply to 30 year and 15 year fixed rate, fully amortizing (no interest only) and owner occupied.
ARMS are being considered, but if allowed, the increase will likely apply to one ARM type (for example 5/1 ARMS)
FNMA will have other credit overlays including LTV limitations (probably 90%)
The limits will be effective as soon as the bill is signed, FNMA determines pricing, and the lenders can update their systems.
Washington DC MSA may go up to $547,500. None of the above is official yet. More to come….
CONTACT Laura Triplett:
Vice President - Branch Manager
Suntrust Mortgage
Office: 703-492-5057
Mobile: 703-919-3679
email: Laura.Triplett@SunTrust.com
Laura's Web Site
Wednesday, February 13, 2008
New Conforming Loan Limits - Update (Laura Triplett from SunTrust)
