Latest announcements

Conforming Limits

We just got word conforming jumbo loan limit has been raised to $729,950 in 250 counties.

Locally, in Maryland the following counties will allow up to $729,950,
Charles, Frederick, Calvert, Montgomery and Prince Georges.

In Virginia, Alexandria city, Arlington county, Clarke county, Fairfax county and city, falls Church city, Fredericksburg City, Fauquier, Loudon, Prince Williams, Spotsylvania, Stafford, Warren counties, Manassas City and Manassas Park City.
Other local counties also have their loan limits raised. Call me if you want to know the new limit.

May 1st is the day these loans limits will take effect, you should apply now to get ready for loan approval in May.

Refi Plus Program

Starting on April 6th (today) we will be able to offer up to 105% financing on existing Fannie Mae loans, this will allow borrowers underwater to take advantage of the current lower rates. Contact me to find out if your loan is an existing Fannie Mae loan if you are interested in applying.

Eligibility

As of right now, to be eligible for this program your loan must currently be Fannie Mae loan. You can look up whether you have a Fannie Mae loan with Fannie Mae in a matter of 5 seconds by going to: http://loanlookup.fanniemae.com/loanlookup/ . Enter your address and it will tell you if Fannie Mae owns your loan.

This program is aimed at people who are current on their mortgage payments (no 60 day lates in the last 12 months), but cannot take advantage of the low rates because their current Loan to Value is too high to refinance, or based upon the new LTV the hit on Mortgage Insurance makes it unsensible to refinance.

Your loan amount must also must meet conforming limits (each county has a conforming limit assigned by Fannie Mae).

Valuation

The main advantage of this program is that you can finance up to 105% of your current market value at near market rates (we'll have to wait and see how closely to the market lenders can offer for this program). From all preliminary accounts, your value will be determined by census track data. Obviously, there are no cash-out transactions allowed on any refinancing.

Mortgage Insurance (Starting May 4th)

If you did not pay MI on your current transaction, or you had it waived after reaching below 80% LTV and you use this program you will NOT need to pay MI, even if your new LTV is above 80%.

However, if you currently are paying MI you will still need to pay MI. Many MI companies (if not all) are offering modification programs, so more than likely your rate and coverage will remain the same, but is based on the new loan amount.

2nd trusts & HELOC's

Under the new guidelines, you cannot set up 2 trusts at the time of closing. This means, you cannot set up an "80-10-10" in order to avoid paying mortgage insurance (this really shouldn't be an issue since there are very few lenders who even offer this anymore). If you currently have a 2nd trust or HELOC, you must subordinate them.