1st time buyers – new CalHFA income limits – wow!

A very strange move after many years, related to 1st time buyer programs with the state of CA. Formerly, until a few days ago, the down payment and closing cost assistance programs with CalHFA were pretty restrictive regarding the maximum amount of income a family could make and still use the programs.

On average, in OC that seemed to be in the $75,000 to $85,000 range roughly, unless you had a very large family.

But now you can make up to $174,2000 per year in OC, and $128,300 in LA county. San Diego county is $157,050, Riverside and San Bern. $128,700 and San Fran. county $228,300.

Now that’s some income relief for 1st time buyers. And, for ALL the state, the maximum sales price is $660,000. So now, if a prospective 1st time buyer (anyone who has not had a home in the last 3 years) has the income to qualify for a property, they can do it much easier and with ridiculously little cash needed.

I and our company are fully approved to do these loans. Recommendation is 40 day escrows. Conventional, FHA & VA products are available on these assistance programs. Gifts are also allowed.

This would work really well, using the “Cost of Renting” illustration I may have sent you personally earlier in the week, and then down payment and closing cost assistance. πŸ™‚ Start those engines!!!!!


PS If you did not receive the “Cost of Renting” illustration, e-mail me for a copy.

DID YOU KNOW? Fannie Mae Pending Sale Option

(this has been around for awhile)

Purchase transactions can be made difficult when the borrower retains or plans to sell their departing residence, but will not be rented or sold prior to closing.

For this reason, Fannie Mae provides an opportunity to omit the liability from the vacated property, as outlined below:

If the borrower’s current principal residence is pending sale, but the transaction will not close with title transfer to the new owner prior to the subject transaction, and the borrower is purchasing a new principal residence, the current PITIA and the proposed PITIA must be used in qualifying the borrower for the new mortgage loan…

However, Fannie Mae will not require the current principal residence’s PITIA to be used in qualifying the borrower as long as the following documentation is provided:

  • the executed sales contract for the current residence, and
  • confirmation that any financing contingencies have been cleared.

Hopefully, when you really need a purchase to close and can’t due to the PITIA debt on their current residence in escrow, and they don’t have to have that cash to close, or can creatively get it (legally, and per guidelines πŸ™‚ somewhere else, then this option foots the bill!

Have a great weekend!


County Loan Limits Increased for 2018!

Happy Friday!

Wednesday, November 29th, the Federal Housing Finance Agency (FHFA) announced updated county loan limits for 2018.

Fannie Mae and Freddie Mac employ the FHFA established loan limits, and recognized the newly increased limits (applicable to both Conforming and High Balance loan amounts) as shown below:

Conforming Loan Limit:

  • 1-Unit: $453,100
  • 2-Unit: $580,150
  • 3-Unit: $701,250
  • 4-Unit: $871,450

High-Cost Loan Limit:

  • 1-Unit: $679,650
  • 2-Unit: $870,225
  • 3-Unit: $1,051,875
  • 4-Unit: $1,307,175

Note: Maximum high-cost loan limits are not available in all counties.

If you’re interested in obtaining the new limits on a per county basis, Fannie Mae has provided an updated spreadsheet for 2018 which can be found https://www.fanniemae.com/singlefamily/loan-limits

This news presents a great opportunity for clients to refinance who recently used High Balance or Jumbo products and could benefit from an improved Conforming or High Balance rate! J

A blurb in a flyer or newsletter to your clients or farm could generate some interest and/or contact! πŸ™‚

Have a great weekend!