by Shannon McAlister | Nov 28, 2017 | Uncategorized
The conforming loan limit is increasing to $453,100 in 2018, up from $424,100. This applies to all “Conventional” mortgages – loans that conform to Fannie Mae or Freddie Mac guidelines. Any loan amount over this mark is considered a Jumbo loan and is subject to a different set of underwriting and qualification guidelines.
The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price. The Federal Housing Finance Agency (FHFA) is responsible for setting this limit.
According to the National Association of Realtors, the median home price in Portland for Q3 2017 is $389,400, a 8.6% increase from their last report.
by Shannon McAlister | Feb 25, 2016 | Refinance
2016 has, so far, been unfriendly to stocks and is likely not finished heading into a bear market. With falling oil prices, China’s economic turmoil, and other global pressures, investors are flocking to the safety of mortgage bonds. This translates directly to lower mortgage rates. Bad news to good news!
With many scenarios dipping below the 4.0%* mark again, here are some good reasons to consider a refinance:
- Save money with a lower rate. If your rate is 4.25% or above, it’s a good time to look at what you might save over the short and long term.
- Leverage your equity for investment. Portland home appreciation is up which means you likely have added equity in your property. Many people are leveraging this to upgrade to a larger home or buy a rental property.
- Consolidate high interest debt. This isn’t my favorite reason to refinance, as you may be trading a short-term debt for a long-term payment, but I can help you do the math to determine if it makes sense.
- Get rid of your mortgage insurance. Mortgage insurance benefits you not! It’s simply the lender’s protection against foreclosure. If you have at least 20% equity in your property, you can remove the MI and save.
- Renovate your home. Build up, build down, remodel or build that Accessory Dwelling Unit (ADU) to rent out and create cash flow, simultaneously increasing the value of your property.
by Shannon McAlister | Mar 19, 2015 | Mortgage
Buying a home just got easier! A new Down Payment Assistance Program (DAP) for FHA loans means that borrowers only need .5% down. The DAP is a second mortgage, up to 3% of the sales price that can be used to meet the minimum down payment requirement and/or for closing costs. The DAP can be coupled with Portland’s MCC First Time Homebuyer Tax Credit. Certain eligibility requirements apply including income and debt limits.
by Shannon McAlister | Aug 12, 2014 | Mortgage, Rural
The annual fee for USDA loans will increase from 0.4% to 0.5% of the unpaid loan balance beginning October 1, 2014. There is no change to the upfront fee of 2% which may be financed.
USDA, or Section 502 loans are intended to help families purchase or refinance homes in rural areas. Zero down and no monthly mortgage insurance make these loans affordable and accessible. The property must be in an approved rural area and income limits apply. Find eligible rural areas here.
by Shannon McAlister | Oct 1, 2013 | Mortgage
Wondering what impact the government shutdown will have on the loan process? Here are the things you need to know.
- IRS tax transcripts. These must be ordered from the IRS for ALL LOANS. They typically take a day or two. Expect delays.
- Social Security Number verification. This is required for ALL LOANS. It typically takes a day or two to process. Expect delays.
- Verification of Employment. Expect delays for government employees needing a VOE.
- FHA & VA Loans. Case numbers must be ordered for these types of loans. As of this morning, the website was working fine and FHA case numbers were being issued. It is my understanding that if the shutdown continues beyond one week, this service could be affected and delays will follow.
- VA Appraisals. This is an automated system that should not be affected, but could be if the shutdown goes on for any length of time, delays could follow.
- VA Certificate of Eligibility. This is typically an automated process and should not be affected by the shutdown. If it continues and the automated system isn’t supported, it will revert to a manual system; expect delays.
- USDA Loans. This office is closed due to the shutdown. USDA loans are underwritten by the lender and then sent to the USDA for a second underwrite. Turntimes are already 7-14 days. Expect delays in the short term and significant delays if the shutdown continues.
- Lock Agreements. If you are affected by the shutdown, reassess your lock and plan accordingly. Lock extensions can be costly.
- Interest rates. This is the big variable. Extensions are costly and an increase could put a loan in jeopardy. Do what you can mitigate any risk of losing your lock.
If you have any questions regarding this information, or would like to know how your loan application may be affected by the government shutdown, contact me anytime. I will provide updates as they become available. In the meantime, let’s hope for some teamwork and an agreeable budget.
