Friday, March 7, 2008

New loan guidelines and higher limits

Yulin Lee of Opes Advisors - she is my go-to lender - submitted this press release on the new loan limits by Fannie Mae:

Fannie Mae Implements Jumbo-Conforming Mortgages
As of this morning, Fannie Mae announced that it will increase its conventional loan limits to a maximum of $729,750 for single family homes. This increase is a temporary one, and is good through the end of 2008.

This new "breed" of loans between $417K - $729,750 are being called Jumbo-Conforming loans, and Fannie Mae has published details on borrower and product eligibility, underwriting, pricing, and delivery of these loans for certain high-cost areas.

Here's a quote from Fannie Mae:
"To help provide liquidity to this market segment, we will accept whole loans and MBS deliveries of Jumbo-Conforming Mortgages starting April 1, 2008 for 15- and 30-year FRMs, and starting May 1, 2008 for 5/1 ARMs. A 5/1 ARM with a 10-year interest-only period will be available in addition to fully amortizing options."

Ten Bay Area counties will have their limits raised to the new maximum loan limit of $729,750 for all three types of loans (FHA, Fannie Mae, Freddie Mac). Those 10 counties include: Alameda, Contra Costa, Marin, San Francisco, San Mateo, San Benito, Santa Clara, Santa Cruz, Napa and Monterey.

What we still don't know is when the lenders will start rolling out programs with the new loan limits and pricing. We expect it to be in the next couple of weeks. If you are interested in learning more about the details and how this change might impact you, feel free to give me a call.

Below are some useful links for more info:

Change Is In the Air

In an effort to continue serving my clients with the best products and services available, I have recently changed company. I am excited to tell you that I am now with Opes Advisors in Palo Alto. In my capacity as your Mortgage Advisor, I will continue to support you and serve you with all your Mortgage Planning & real estate investment needs.

To learn more about Opes Advisors, please check us out at

Yulin S. Lee, MBA, CMPS
Mortgage Advisor
Building Wealth, One Piece At A Time!

Phone: 650-799-8768

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