Maximum Loan Limits for VA Loans Increased to $838,750 for High Cost of Living Areas in Virginia, Maryland and D.C. for VA Loans Closed August 6, 2012 through December 31, 2012

The Honoring America’s Veterans and Caring for Camp Lejeune Families Act of 2012 has been signed into law. The Act includes a number of changes to the Department of Veterans Affairs’ (VA) Loan Guaranty program, including reverting back to the previous method of calculating maximum guaranty. This resulted in some loan limits increasing.

While VA does not have a maximum loan amount, the following county “limits” must be used to calculate VA’s maximum guaranty amount for a particular county. These limits apply to all VA loans closed August 6, 2012 through December 31, 2012.

Read Full Post »

Conforming Loan Limits for Conventional Mortgages at $625,500 and FHA Loan Limits at $729,750 for High Cost of Living Areas in Northern Virginia and Arlington County VA, Fairfax County VA, Fauquier County VA, Loudoun County VA, and Prince William County VA through December 31, 2013

Senate Passed Loan Limit Extension Amendment

U.S. lawmakers moved Thursday, November 17, 2011 to increase the maximum size of FHA loans that are guaranteed by the Federal Housing Administration to $729,750.  The U.S. Senate has passed an amendment that raised the Federal Housing Administration loan limits back to 125% of the local area median home price (from the current 115%) and raised the high-cost cap to $729,750 (from the current $625,500) for one unit residential properties insured by FHA through December 31, 2013.

.

However, Fannie Mae and Freddie Mac conforming loan limits for conventional mortgages stay at $625,500 as of October 1, 2011. The maximum conforming loan limits for secondary mortgage market companies Fannie Mae and Freddie Mac also expired at the end of September 2011, but lawmakers did not include a restoration of those limits in the bill. As a result, conforming loan limits will remain at 115% of the area median home price, up to $625,500.  The Senate voted to approve the bill Thursday evening, November 17, after the House voted earlier in the day.

.

.

The conforming loan limits for conventional mortgage loans for the Washington, D.C. area and Northern Virginia, Arlington County VA, Fairfax County VA, Loudoun County VA, Prince William County VA are as follows:

• 1 – UNIT         $625,500
• 2 – UNIT         $800,775
• 3 – UNIT         $967,950
• 4 – UNIT      $1,202,925

.

.

FHA guarantees loans to buyers with down payments as low as 3.5%. Conforming conventional loans require 10%-20%+ downpayment to qualify for financing. Non-conforming, so called jumbo,  conventional mortgage loans are available at higher interest rates and require larger downpayment.

.

The move by Congress gives borrowers seeking loans between $625,500 and $729,750 in pricey markets two options.

• They can take out “jumbo” loans that carry higher interest rates than those backed by Fannie and Freddie and require down payments of at least 20%.
• Or, they can take out an FHA loan, which allows for lower down payments but charges insurance premiums that add to borrowers’ costs.

In the past four years, as private lenders have pulled back from the mortgage market, the FHA’s market share has swollen. It backed one third of mortgages used to finance home purchases last year, up from around 5% in 2006. The FHA doesn’t make loans but insures lenders against defaults on mortgages that meet its standards.

.

NOTE: Always contact your lender for details.

.

Click here for Mortgage Calculators and Interest Rates TODAY

.

SOURCE: National Association of REALTORS

Read Full Post »

Conforming Loan Limits and FHA Loan Limits at $625,500 for High Cost of Living Areas in Northern Virginia and Arlington County VA, Fairfax County VA, Fauquier County VA, Loudoun County VA, and Prince William County VA as of October 1, 2011

Senate Passed Loan Limit Extension Amendment – FHA loan limits back at $729,750 – click the link for more information: https://viviannerutkowski.wordpress.com/2011/11/16/conforming-loan-limits-for-conventional-mortgages-and-fha-loan-limits-at-729750-for-high-cost-of-living-areas-in-northern-virginia-and-arlington-county-va-fairfax-county-va-fauquier-county-va-lou/

.

On October 1, 2011, mortgage loan limits for the government-sponsored enterprises Fannie Mae and Freddie Mac (GSEs) and the Federal Housing Administration (FHA) dropped from temporary levels to reduced limits based on permanent criteria established by Congress in 2008.

The base limit for most of US remains at $417,000, but the formula for establishing limits for high cost areas, like Northern Virginia, changed from 125% to 115% of the area MEDIAN HOME PRICE which means a drop in loan limit from $729,750 to $625,500.

It means that $625,500 is the maximum loan amount for one unit residential properties in high cost areas that can be purchased and securitized by Fannie Mae and Freddie Mac (GSEs).

.

As with the conventional loans insured by GSEs (Fannie Mae and Freddie Mac), on October 1, 2011, the loan limits for the FHA loans also declined due to changes set in law. FHA loan limits are set slightly differently than those for Fannie Mae and Freddie Mac. By law, the lowest limit for any county in US for one-unit homes is $271,050. The ceiling for FHA loans in high cost areas declined on October 1, 2011 from $729,750 to $625,500 for one unit residential properties.

.

.

The new 2011-2012 GSE Conforming Loan Limits in Washington, D.C. area, Northern Virginia and Arlington County VA, Fairfax County VA, Fauquier County VA, Loudoun County VA, and Prince William County VA are as follows:

• 1 – UNIT         $625,500
• 2 – UNIT         $800,775
• 3 – UNIT         $967,950
• 4 – UNIT      $1,202,925 

.

.

The loan limits for VA Loans, mortgages guaranteed by the Department of Veterans Affairs, will change on January 1, 2012.  The current VA loan limit in Northern Virginia area is $818,750 thru December 31, 2011.  http://www.googlerealestate.com/va-loan-limits-2011/

.

.

The new GSE Conforming Loan Limits for all counties in USA and Northern Virginia, Arlington County VA, Fairfax County VA, Fauquier County VA, Loudoun County VA, and Prince William County VA: http://www.nahb.org/fileUpload_details.aspx?contentTypeID=3&contentID=159279&subContentID=353571&channelID=311

The new FHA Loan Limits for all counties in USA and Northern Virginia, Arlington County VA, Fairfax County VA, Fauquier County VA, Loudoun County VA, and Prince William County VA:
http://www.nahb.org/fileUpload_details.aspx?contentTypeID=3&contentID=159279&subContentID=353572&channelID=311

.

Click here for Mortgage Calculators and Interest Rates TODAY

.

.

NOTE: Advertisement Ads which appear in most posts on this Blog are run by WordPress and do NOT necessarily represent the views of Vivianne Rutkowski or Keller Williams Realty. Visitors to this blog are NOT obligated to click the ads to visit this blog.

Read Full Post »

Freddie Mac and Fannie Mae Jumbo Mortgages Maximum Loan Amount to Decrease From $729,750 Back to $625,500 as of October 1, 2011 for Washington, D.C. Area, Including Arlington County VA, Fairfax County VA, Fauquier County VA, Loudoun County VA, Prince William County VA

October 1, 2011 the government plans to scale back the size of “jumbo” mortgages it guarantees in high-cost real estate markets, which includes Washington, D.C. area and Northern Virginia counties that I serve as a real estate agent: Arlington County VA, Fairfax County VA, Fauquier County VA, Loudoun County VA, and Prince William County VA.

.

On October 1, 2011 the maximum loan amount that Fannie Mae and Freddie Mac guarantee is set to decrease from $729,750 to $625,500. This might make mortgages more expensive or more difficult to get for buyers in high-cost areas, MSNBC.com reports.

.

For example, after October 1, 2011 a borrower who seeks a government-backed mortgage for a $1-million property may have to come up with a $370,000 down payment instead of $270,000, Rob Chrisman, a mortgage banking consultant from San Rafael, Calif., told MSNBC.

.

Up until 2008, any loan more than $418,000 was considered a jumbo loan, but that later swelled to $625,500 and then was temporarily set at $729,750 (which expires at the end of September 2011).

.

Once the current jumbo loan limit expires, lenders who want to make loans OVER $625,500 either will have to hold onto the mortgage themselves or find a private investor to purchase it.

.

NOTE: This is only my personal opinion. It will be interesting to watch how decreasing the maximum loan amount will affect home prices in Washington, D.C. area.

It may have two-fold effect:

1. The prices for expensive homes may DECREASE as there will be FEWER buyers able to afford the bigger down payment requirement and thus the supply of homes will be greater than demand for them.
2. However, the prices for homes that are now in $550K-$750K price range may INCREASE as there will be greater demand for those homes because buyers who would have purchased homes with the $729,750 loans now will qualify only for $625,500 and many of them cannot afford bigger down payment.

.

The Federal Government needs to do whatever it needs to do to protect the TAXPAYERS. In general, the monthly mortgage payment should NOT exceed 31% of the monthly income, and the TOTAL monthly debt payments should NOT exceed 45% of the monthly income. Clearly, the market shift is not over and we need to accept it with a smile – maybe one day it will be a good story to tell the Grandchildren and collectively learn from the experience. Cheers!

.

.

NOTE: Advertisement Ads which appear in most posts on this Blog are run by WordPress and do NOT necessarily represent the views of Vivianne Rutkowski or Keller Williams Realty. Visitors to this blog are NOT obligated to click the ads to visit this blog..

Read Full Post »

FHA and Conforming Loan Limits at $729,750 for the Washington, D.C. Area for 2009

The U.S. Department of Housing and Urban Development has released new FHA and conforming loan limits as part of the massive economic stimulus bill.  Mortgage maximums are effective as of Wednesday, February 25, 2009.

Under the legislation, loan limits in high-cost areas are increased to $729,750, the same as in 2008. They had dropped to $625,500 before passage of the economic stimulus legislation and were raised back to $729,750.

.

The FHA and conforming loan limits for the Washington, D.C.,Northern Virginia and Maryland, are as follows:

 

• One Family:  $729,750
• Two Family:  $934,200
• Three Family: $1,129,250
• Four Family: $1,403,400

The loan limits for Washington, D.C. area, Maryland and Virginia counties, can be accessed in a searchable form on HUD’s Web site by entering county name or county tax code.

Source: REALTOR® Magazine 

.

.

NOTE: Advertisement Ads which appear in most posts on this Blog are run by WordPress and do NOT necessarily represent the views of Vivianne Rutkowski or Keller Williams Realty. Visitors to this blog are NOT obligated to click the ads to visit this blog.

Read Full Post »