New Qualifying Guidelines for Increased Conforming Loan Limits
Just received this update from Floyd Walters with BWA Mortgage:
Along with the increased conforming loan limits, Fannie Mae has updated their underwriting (loan approval) criteria (purchase money loans):
10% down required
Mid 700 FICO scores required for Borrowers with less than 20% down
No stated income (wink wink) – all income must be documented
There will be a "small" add on price for loans stretching to the new limit
A 5/1 ARM (adjustable rate loan) will also be available with different underwriting criteria; refinance criteria will be changed too.
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5/1/2008 6:21 AM
Los Angeles Real Estate Blog wrote:
Everyone has access to statistics and figures, but I took a “very informal poll” this morning and queried several local Realtors and the consensus is that property values in my market have dropped approximately 10% - 20% and in a few neighborhoods perhaps as high as 25%, a good solid average is close to 20%.WOW! A Home that was $1,000,000 in 2006 could now be priced at about $800,000 – a $750,000 home is likely to be down to $600,000! Even better news is that the Freddie -
5/16/2008 10:03 AM
Los Angeles Real Estate Blog wrote:
In an effort to spur the housing market, the increased conforming loan limits in high priced areas such as Los Angeles are finally becoming affordable. Late last week, many lenders slashed their rates by about one-half of a percentage point on jumbo-conforming loans - mortgages between $417,000 and $729,750 that can be guaranteed by Fannie Mae and Freddie Mac. Read the remainder here: ...
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