The high balance conforming loan limits are going back down to $625,500 from $729,750 on September 30, 2011. Rates on jumbo financing on ARM products have about a 25 bps spread compared to government backed loans, while fixed rate products are about 37.5 bps. This change can definitely lower the amount of money that banks are able to pre-qualify you for, whether due to underwriting guideline... [more]
The high balance conforming loan limits are going back down to $625,500 from $729,750 on September 30, 2011. Rates on jumbo financing on ARM products have about a 25 bps spread compared to government backed loans, while fixed rate products are about 37.5 bps. This change can definitely lower the amount of money that banks are able to pre-qualify you for, whether due to underwriting guideline changes on loan to value or just simply a change in your debt to income ratio due to the slightly higher rate. You need to close by this date, not just lock your rate. If you need any more information, a pre-qualification, or just a rate quote, please give me a call.
Jim McPartland
Wells Fargo Private Mortgage Banking
212.805.1131
james.mcpartland@wellsfargo.com
Here is the link to FNMA's site: https://www.efanniemae.com/sf/refmaterials/loanlimits/[less]
Response by matsonjones
over 14 years ago
Posts: 1183
Member since: Feb 2007
yawn. old news. many threads about this here already. stop spamming. thank you.
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Response by jimmcp
over 14 years ago
Posts: 58
Member since: Jul 2009
Sorry for boring you Matsonjones, but there is a misunderstanding in the market that buyers just need to be locked by September 30th. I figured this would be a good reminder for those readers that aren't posting/ reading on here all day.
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Response by w67thstreet
over 14 years ago
Posts: 9003
Member since: Dec 2008
That's Fking great news for people with steady incomes, lots of cash and Are strategically renting.
For everyone else, fukc u.
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Response by inonada
over 14 years ago
Posts: 7952
Member since: Oct 2008
So you gotta close 4 months from now. Last chance, kids!
Clearly bullish:
1) Uptick in sales from buyers getting in before it's too late. See last year's $8000 tax credit.
2) Obvious sign of bullishness now that the govt feels it's OK to pull support.
3) Strengthening in buyer base as this will require wealthier buyers, so no less-qualified people who have to sell at a loss.
4) Coop force field deflects all, dummies.
5) Aubergine & family values.
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Response by inonada
over 14 years ago
Posts: 7952
Member since: Oct 2008
Jim, I didn't know it was that you must close by Sept 30th, and I'm one of those reading / posting all day. Thanks.
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Response by jimmcp
over 14 years ago
Posts: 58
Member since: Jul 2009
Thanks inonada.
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Response by West81st
over 14 years ago
Posts: 5564
Member since: Jan 2008
After Sunny Hong posted this news at http://streeteasy.com/nyc/talk/discussion/27000-conforming-loan-reduced-to-625500 , I asked a loan officer at a major bank (initials M and T) about the change. She insisted that anyone who locked in by September 30th would be fine. It's pretty clear from Fannie's FAQs that she was wrong, and that Sunny and Jim are right.
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Response by jimmcp
over 14 years ago
Posts: 58
Member since: Jul 2009
"Barring congressional action, the “temporary” loan limits now in place will expire on that date and loans with mortgage note dates on or after October 1, 2011, will be subject to the “permanent” limits."
The misunderstanding on this issue is driven by people that are trying to win business, not by telling the truth, but telling people what they want to hear. I highly recommend that you speak to more than one lender anytime you are trying to get an answer like this, or even if you want to just get an understanding on rates/products/building approvals, since every bank varies.
james.mcpartland@wellsfargo.com
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Response by FiDi10005
over 14 years ago
Posts: 2
Member since: Jun 2011
This is great to know! I am signing a contract this week and thought it was a lock thing not a close thing. Much appreciated Jim and West!
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Response by shong
over 14 years ago
Posts: 616
Member since: Apr 2008
Please keep in mind the last day to apply for a high balance conforming loan between 625,501 and 729,750. For us it is 6/30/11. The last day to close is 9/30/11 but if you don't have your application in on or before 6/30/11 then it doesn't matter. sunny.hong@bankofamerica.com
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Response by jimmcp
over 14 years ago
Posts: 58
Member since: Jul 2009
Please note that the last day to lock a $729,750 loan is going to be 8/31/2011 for a 30 day lock with Wells Fargo
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yawn. old news. many threads about this here already. stop spamming. thank you.
Sorry for boring you Matsonjones, but there is a misunderstanding in the market that buyers just need to be locked by September 30th. I figured this would be a good reminder for those readers that aren't posting/ reading on here all day.
That's Fking great news for people with steady incomes, lots of cash and Are strategically renting.
For everyone else, fukc u.
So you gotta close 4 months from now. Last chance, kids!
Clearly bullish:
1) Uptick in sales from buyers getting in before it's too late. See last year's $8000 tax credit.
2) Obvious sign of bullishness now that the govt feels it's OK to pull support.
3) Strengthening in buyer base as this will require wealthier buyers, so no less-qualified people who have to sell at a loss.
4) Coop force field deflects all, dummies.
5) Aubergine & family values.
Jim, I didn't know it was that you must close by Sept 30th, and I'm one of those reading / posting all day. Thanks.
Thanks inonada.
After Sunny Hong posted this news at http://streeteasy.com/nyc/talk/discussion/27000-conforming-loan-reduced-to-625500 , I asked a loan officer at a major bank (initials M and T) about the change. She insisted that anyone who locked in by September 30th would be fine. It's pretty clear from Fannie's FAQs that she was wrong, and that Sunny and Jim are right.
"Barring congressional action, the “temporary” loan limits now in place will expire on that date and loans with mortgage note dates on or after October 1, 2011, will be subject to the “permanent” limits."
as per: https://www.efanniemae.com/sf/refmaterials/loanlimits/pdf/loanlimitsexpiration.pdf
The misunderstanding on this issue is driven by people that are trying to win business, not by telling the truth, but telling people what they want to hear. I highly recommend that you speak to more than one lender anytime you are trying to get an answer like this, or even if you want to just get an understanding on rates/products/building approvals, since every bank varies.
james.mcpartland@wellsfargo.com
This is great to know! I am signing a contract this week and thought it was a lock thing not a close thing. Much appreciated Jim and West!
Please keep in mind the last day to apply for a high balance conforming loan between 625,501 and 729,750. For us it is 6/30/11. The last day to close is 9/30/11 but if you don't have your application in on or before 6/30/11 then it doesn't matter. sunny.hong@bankofamerica.com
Please note that the last day to lock a $729,750 loan is going to be 8/31/2011 for a 30 day lock with Wells Fargo
james.mcpartland@wellsfargo.com
(212)805-1131