New Conforming Loan Limit Calculator by Zip Code.

We are now getting a glimpse of how investors(mortgage providers) will be treating the new Fannie Mae/Freddie Mac conforming loan limits which were part of the national stimulus package. The first of many investors are coming out with general underwriting guidelines. It appears they are moving cautiously. This may speak volumes on their attitudes on the subject of increased loan amounts. Moreover it appears that they will be categorizing these loans in a different conforming product bucket. (Conforming Jumbo Loans)Below is a conforming loan limit calculator as well as some highlights of the guidelines.

Calculate your new mortgage loan limit by Zip Code. Click Here

Although there are increased loan amount provisions for loan amounts with respect to 2-4 unit properties, I have elected to not share the 2-4 unit loan limit increases quite yet as it appears investors will not be offering these products yet. Investors will only be offering a 1 unit/ single family product.

Guideline Highlights

• single family only.. (as of yet)
• no cash out transactions
• purchase and rate and term refinance only

Purchases - Owner Occupied:

• 10% down payment required with 700 credit score or better
• 20% down payment required 660 credit score or higher.. (need a 660 minimum credit score to get this loan)

Purchases 2nd Homes and Rentals:

• 40% down payment and a minimum 660 credit score. No second mortgage can go behind it.

Refinances - Owner Occupied:

• You can only refinance up to 75% of the homes value. No cash out. You may put a second mortgage behind it up to 95% the value of the home. Minimum 660 credit score.

Refinances - 2nd Homes and Rentals:

• Can refinance up to 60% of the homes value and a minimum 660 credit score. No second mortgage can go behind it.(you could not find one anyway)

Declining markets:

• If your purchase or refinance is in a, whats deemed a declining market, expect to put down an additional 5% on a purchase transaction.
• On refinances expect to subtract 5% from the maximum amount financed.

In a follow up article I will discuss what this really means to consumers and the possible impact on the market.

end.

Roy Slater, Hathaway Real Estate Services