Good news!  Yesterday, the Federal Housing Administration (FHA) announced an increase to loan limits for FHA loans in 2018.  This comes as a sigh of relief for homebuyers in 3,011 counties.  For the past three years, the FHA has increased the number of counties to benefit from higher loan limits, with the biggest bump in 2017.  For 2018, we will see an additional 63 counties added to the list, thus bringing the number of counties up to 3,011.  Thanks to the Housing and Economic Recovery Act of 2008, the FHA sets the single family forward loan limits at 115% of the median house price.  It’s subject to floor and ceiling limits therefore check with your loan officer for more information. 

So how much is the increase?  Well, in some high end areas, such as Los Angeles County, the ceiling will increase from $636,150 to $679,650.  That is a 6.8% increase and it adjusts to meet the lending needs of homebuyers in areas where the cost of homes has grown significantly.  The floor increases as well from $275,665 to $294,515.  Even though most of the counties in the U.S will benefit from the increase, 228 counties won’t be positively impacted.  Loan limits in those counties will remain the same. 

 Along with FHA loans, the FHA insured Home Equity Conversion Mortgages (HECM) or reverse mortgages will see an increase as well.  HECM adjustments aren’t done on a county basis; therefore, it’s only a single assessment for the whole nation.  That number will go up from $636,150 to $679,650 and this is great for those who qualify for the program.  

If you’re in the market today and need to find a lender to work with, give me a call to help you finance your next mortgage transaction.  I’m ready to help you with your financing questions, and I’ve got plenty of experience with loan limits, mortgage products, and market information to help you make the right choice.  

The Federal Housing Finance Agency (FHFA) recently released the home-price index for the third quarter and their findings are quite interesting.  It looks like the U.S real estate market continues to grow with an increase of 6.5% in the past year.  With a healthy and vibrant economy, the real estate market moves forward as demand continues to increase as well.

So, what does this mean for home buyers who are looking to finance their next home?  Well, the same agency that released the real estate data also determines the direction for Fannie and Freddie conforming loan limits.  The FHFA will be increasing the limits for 2018, and if you’re looking for your next home, know that there is some relief in sight. For example, the loan limit in Los Angeles County will increase to $679,650 and in Dallas County the loan limit will increase to $453,100. Click here to look up your county. This adjustment will help alleviate the burden for homebuyers seeking to take advantage of lower interest rates through conforming loan programs.

If you’re in the market today and need to find a lender to work with, give me a call and I can help you finance your next mortgage transaction. I’m ready to answer your financing questions, and I have plenty of experience with loan limits, mortgage products and market information to help you make the right choice. Give me a call or shoot me an email if you’re ready to get started or if you have any questions.

Source: Federal Housing Finance Agency

Today, the Federal Reserve announced that they were raising interest rates. This is the third consecutive interest rate hike, and the Fed is citing a strong economy and low unemployment as reasons for this decision.

However, potential homebuyers don’t need to worry about mortgage rates increasing as the Fed makes their announcement.

The Fed raised short-term interest rates today, but mortgage rates, particularly for the 30-year fixed rate mortgage, are determined by the 10-year Treasury bond. Bonds are influenced by market conditions, global events, etc. and not by the Federal Reserve.

For those considering buying a home, know that though mortgage rates can increase at any moment, they won’t go up just because the Fed raised interest rates.

Source: HousingWire.com, June 14, 2017

The industry is changing and it can be hard to keep track of where we are. Here’s a flyover look at what’s going on in the mortgage industry right now.