Industry Updates

As you have probably heard by now, the conventional loan limit will be increasing effective January 1st, 2018 (for any closing taking place after that date).  The former limit has been $424,100 and will now be $453,100.  The expanded limit for both Fannie and FHA will now be $494,500 versus the old figure of $466,900.  So borrowers will now be able to go up to $453,100 on both conventional and FHA loans at standard pricing and will be able to go up to $494,500 with a small pricing bump (typically .25% - which is pretty standard for typical jumbo pricing).  So a nice feature now will be that someone could go to $550,000 in price and basically do a 90% conventional loan versus having to go jumbo and put 20% down.  And basically all borrowers can now go up ~$30,000 in price/loan amount to stay at equivalent conforming rates.

There is still LIFT money available.  This program is pretty narrow, but you may have a client that could take advantage of it.  Property has to be in Davidson, Wilson, Sumner or Rutherford and unless the borrower is a first responder, military or teacher, the income limit is basically $55,000 per year.  But if eligible, there is a $15,000 down payment assistance fund available.  FHA still requires a 3.5% down payment from borrower, but the conventional 97% Home Ready will allow the assistance funds to go towards down payment.  It is somewhat of a niche program and funds will run out (was estimated to have been out already).  To read more about the program, go to http://www.ahrhousing.org/neighborhoodlift-program/.

THDA has lowered its rate from 4.625% to 4.25% on the Great Choice program (the one most buyers use).  That helps make this program a little more advisable.

Not really industry news, but I would like to introduce a new member to my team.  Emily Keller started working with me on December 4th and will be in charge of all things related to how my team markets and communicates with our clients and industry partners.  I’ve had a vision for this position for a couple of years and am thrilled to have her on my team!  Emily.keller@myfmbank.com